Ethiopia’s economy has registered a decade of rapid and stable growth. Real GDP growth has averaged about 10 per cent over the last decade. The poverty rate declined substantially from 55.3% in 2000 down to 26 percent in 2016. However, Ethiopia still faces significant development challenges.
These include: creating jobs for the growing youth population; addressing macroeconomic imbalances; improving export performance and fostering private initiatives. Ethiopia’s economic reform priorities focus on sustaining the current rapid and inclusive pace of growth to create more and better jobs. Specifically, the government will focus on:
- Ensuring sound macroeconomic management,
- Improving the investment climate and access to credit to foster the private sector,
- Modernizing the financial sector,
- Maximizing private finance for public investment projects,
- Reforming Public Enterprises,
- Advancing economic integration through a coherent trade policy.