Second Ethiopia Economic Update : Laying the Foundation for Achieving Middle Income Status

Over the past decade, Ethiopia has achieved high economic growth, averaging 10.7 percent per year. In 2012, Ethiopia was the 12th fastest growing economy in the World. If the country can continue its historically impressive growth performance, it could potentially reach middle income status by 2025. This, in turn, may require an adjustment in economic policy to phase in the private sector as an additional engine of growth. Moreover, Ethiopia needs to make progress on two related important fronts: enhancing domestic savings, and, resolving the bottlenecks of the trade logistics system. This Second Ethiopia economic update, prepared in collaboration with the Government of Ethiopia, offers policy guidance on how to move forward. Chapter one discusses Ethiopia's growth strategy, which emphasizes a strong expansion of public investment. This model has delivered impressive results, although the underlying macro policy mix highlights important challenges going forward suggesting that an adjustment to strategy may be warranted. One policy challenge relates to raising sufficient domestic savings to finance one of the highest public investment rates in the world, as discussed in chapter two. Another challenge relates to strengthening the competitiveness of the economy, to boost the lagging export performance, and attract foreign direct investment. Ethiopia's trade logistics system is a key constraint in this regard, as highlighted in chapter three.

Bibliographic Details

Main Author:	World Bank
Language:	English en_US
Published:	Washington, DC 2013-06
Subjects:	AGGREGATE DEMAND, AGRICULTURE, BALANCE OF PAYMENTS, BANK ACCOUNT, BANK ASSETS, BANK BRANCH, BANK BRANCH NETWORKS, BANK BRANCHES, BANK DEBT, BANK FINANCING, BANKING SECTOR, BANKING SECTOR ASSETS, BANKING SYSTEM, BANKING SYSTEMS, BASE YEAR, BID, BLACK MARKET, BOND, BOND INVESTMENTS, BONDS, BRANCH NETWORKS, BROAD MONEY, BUDGETING, CAPITAL FORMATION, CAPITAL OUTLAYS, CENTRAL BANK, CENTRAL BANKS, CERTIFICATES OF DEPOSIT, COMMERCIAL BANK, COMMERCIAL BANKS, COMMERCIAL TERMS, COMMODITY PRICES, COMPETITIVE BIDDING, COMPETITIVE TENDERS, COMPETITIVENESS, CONSUMER GOODS, CREDIT GROWTH, CREDITORS, CURRENCY, CURRENCY APPRECIATION, CURRENCY DEPRECIATION, CURRENCY DEVALUATIONS, CURRENT ACCOUNT, CURRENT ACCOUNT DEFICIT, DEBT, DEBT BURDEN, DEBT MANAGEMENT, DEBT RATIOS, DEBT RELIEF, DEBT SERVICE, DEPOSITS, DEVELOPMENT ASSISTANCE, DEVELOPMENT BANK, DISBURSEMENT, DISBURSEMENTS, DISPOSABLE INCOME, DOMESTIC BANKING, DOMESTIC CREDIT, DOMESTIC LIQUIDITY, ECONOMIC ACTIVITY, ECONOMIC DEVELOPMENT, ECONOMIC DEVELOPMENTS, ECONOMIC GROWTH, ECONOMIC OUTLOOK, ECONOMIC PERFORMANCE, ECONOMIC POLICY, ECONOMIC SECTORS, EXCESS LIQUIDITY, EXCHANGE RATE, EXCHANGE RATES, EXPENDITURE, EXPENDITURES, EXPORT COMPETITIVENESS, EXPORT GROWTH, EXPORT PERFORMANCE, EXTERNAL BORROWING, EXTERNAL DEBT, FINANCES, FINANCIAL DEVELOPMENT, FINANCIAL INTERMEDIATION, FINANCIAL LITERACY, FINANCIAL SECTOR, FINANCIAL SECTOR DEVELOPMENT, FISCAL POLICY, FIXED CAPITAL, FIXED INVESTMENT, FORECASTS, FOREIGN DIRECT INVESTMENT, FOREIGN EXCHANGE, FOREIGN EXCHANGE MARKET, FOREIGN EXCHANGE RESERVES, FREE TRADE, GDP, GDP DEFLATOR, GDP PER CAPITA, GENERALIZED SYSTEM OF PREFERENCES, GINI COEFFICIENT, GOVERNMENT BONDS, GOVERNMENT INVESTMENT, GOVERNMENT POLICIES, GOVERNMENT REVENUE, GOVERNMENT REVENUES, GOVERNMENT SAVING, GOVERNMENT SAVINGS, GROSS DOMESTIC PRODUCT, GROSS NATIONAL SAVINGS, GROWTH OPPORTUNITY, GROWTH RATE, HOUSEHOLD SAVINGS, HUMAN DEVELOPMENT, IMPORT COSTS, INCOME, INCOME GROWTH, INCOME LEVEL, INFLATION, INFLATION RATE, INFLATION RATES, INFLATIONARY PRESSURE, INFORMAL SAVINGS, INFRASTRUCTURE INVESTMENTS, INSTRUMENT, INTERNATIONAL DEVELOPMENT, INTERNATIONAL FINANCE, INVENTORIES, INVESTMENT ACTIVITIES, INVESTMENT ACTIVITY, INVESTMENT DECISIONS, INVESTMENT FINANCING, INVESTMENT PROCEEDS, INVESTMENT PROJECTS, INVESTMENT PROPOSALS, INVESTMENT RATE, INVESTMENT RATES, INVESTMENT STRATEGY, KEY CHALLENGE, LABOR MARKET, LIQUIDITY, LIQUIDITY POSITION, LOAN, LOAN CONTRACT, LOAN TERM, LOANABLE FUNDS, LOCAL CURRENCY, M2, MACROECONOMIC ENVIRONMENT, MACROECONOMIC POLICIES, MACROECONOMIC STABILITY, MARKET PRICE, MATURITY, MICRO FINANCE, MICRO FINANCE INSTITUTIONS, MICRO FINANCING, MICRO-FINANCE, MICRO-FINANCE INSTITUTIONS, MONETARY AUTHORITIES, MONETARY FUND, MONETARY POLICY, MONEY MULTIPLIER, MONEY SUPPLY, NATIONAL BANK, NATIONAL INCOME, NATIONAL SAVING, NET EXPORTS, NOMINAL INTEREST RATE, NON-PERFORMING LOAN, NON-PERFORMING LOANS, OPEN MARKET, OPEN MARKET OPERATIONS, OUTPUT PER CAPITA, PENSION, PENSION SYSTEM, PER CAPITA INCOME, PRIVATE BANKS, PRIVATE INVESTMENT, PRIVATE SECTOR CREDIT, PUBLIC BANKS, PUBLIC DEBT, PUBLIC INVESTMENT, PUBLIC INVESTMENTS, PUBLIC SAVING, PUBLIC SAVINGS, PUBLIC SECTOR DEBT, QUANTITY THEORY OF MONEY, REAL EXCHANGE RATE, REAL GDP, REAL INTEREST, REAL INTEREST RATE, REAL INTEREST RATES, RECURRENT EXPENDITURES, REMITTANCES, RESERVE, RESERVE REQUIREMENT, RESERVE REQUIREMENTS, RESERVES, RETURN, SAVINGS, SAVINGS RATE, SAVINGS RATES, SAVINGS SCHEMES, STRUCTURAL CHANGE, SUPPLY CHAIN, T-BILLS, TAX, TAX COLLECTION, TAX RATES, TAX REVENUES, TAXATION, TERMS OF CREDIT, TOTAL OUTPUT, TRADE BALANCE, TRADE DEFICIT, TRADING, TRANSPARENCY, TREASURY, TREASURY BILL, TREASURY BILL RATE, UNEMPLOYMENT, UNEMPLOYMENT RATE, VALUE ADDED, VELOCITY OF MONEY, WAREHOUSES, WORLD TRADE ORGANIZATION, WTO,
Online Access:	http://documents.worldbank.org/curated/en/2013/06/18594155/ethiopia-second-economic-update-laying-foundation-achieving-middle-income-status https://hdl.handle.net/10986/16740
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