Ethiopia Economic Update : The Inescapable Manufacturing-Services Nexus

Ethiopia Economic Update : The Inescapable Manufacturing-Services Nexus

Ethiopia’s gross domestic product (GDP) growth is estimated to have rebounded to 10.9 percent in FY2017. According to official statistics, Ethiopia’s annual rate of economic growth, which averaged 10.3 percent over 2005/06-2015/16 (compared with th...

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Bibliographic Details
Main Author: World Bank
Format: Report
Language:English
Published: World Bank, Washington, DC 2018
Subjects:
DEBT SERVICE
ECONOMIC GROWTH
ECONOMIC OUTLOOK
MONETARY POLICY
FISCAL TRENDS
TRADE
LABOR PRODUCTIVITY
SERVICES SECTOR
SERVICES TRADE
MANUFACTURING EXPORTS
DISTRIBUTION
POLITICAL ECONOMY
VALUE CHAIN
MANUFACTURING SECTOR
Online Access:http://documents.worldbank.org/curated/en/811791526447120021/The-inescapable-manufacturing-services-nexus-exploring-the-potentialof-distribution-services
http://hdl.handle.net/10986/29919
id okr-10986-29919
recordtype oai_dc
spelling okr-10986-299192021-05-25T09:15:11Z Ethiopia Economic Update : The Inescapable Manufacturing-Services Nexus World Bank DEBT SERVICE ECONOMIC GROWTH ECONOMIC OUTLOOK MONETARY POLICY FISCAL TRENDS TRADE LABOR PRODUCTIVITY SERVICES SECTOR SERVICES TRADE MANUFACTURING EXPORTS DISTRIBUTION POLITICAL ECONOMY VALUE CHAIN MANUFACTURING SECTOR Ethiopia’s gross domestic product (GDP) growth is estimated to have rebounded to 10.9 percent in FY2017. According to official statistics, Ethiopia’s annual rate of economic growth, which averaged 10.3 percent over 2005/06-2015/16 (compared with the regional average of 5.4 percent), slowed to 8 percent in FY2016 due to drought-related lower agricultural production. With agricultural recovery, gross domestic product (GDP) growth rebounded in FY2017. The pursuit of prudent fiscal policy, with a fiscal deficit at 3.4 percent of GDP, should help keep inflation under control, providing monetary conditions remain tight in the aftermath of the devaluation of the Birr in October 2017. Key challenges relate to poor export performance (Ethiopia’s growth has been driven by investment followed by private consumption) and weak trade balance, which reflect the lack of external competitiveness and the vulnerability to terms of-trade shocks. The rising risk of external debt distress may affect Ethiopia’s access to external finance. These developments require continued policy adjustment to crowd-in the private sector and strengthen Ethiopia’s competitiveness. Part one of this Economic Update, on recent economic developments and outlook, discusses Ethiopia’s growth strategy, emphasizing the sustainability of the country’s investment-focused and export-led growth model. Part two looks at the interlinkages between manufacturing and services, with a special focus on the role of distribution services in promoting Ethiopia’s export competitiveness and eventually its structural transformation. 2018-06-20T17:04:16Z 2018-06-20T17:04:16Z 2018-05-15 Report http://documents.worldbank.org/curated/en/811791526447120021/The-inescapable-manufacturing-services-nexus-exploring-the-potentialof-distribution-services http://hdl.handle.net/10986/29919 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Economic & Sector Work :: Economic Updates and Modeling Economic & Sector Work Africa Ethiopia
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic DEBT SERVICE
ECONOMIC GROWTH
ECONOMIC OUTLOOK
MONETARY POLICY
FISCAL TRENDS
TRADE
LABOR PRODUCTIVITY
SERVICES SECTOR
SERVICES TRADE
MANUFACTURING EXPORTS
DISTRIBUTION
POLITICAL ECONOMY
VALUE CHAIN
MANUFACTURING SECTOR
spellingShingle DEBT SERVICE
ECONOMIC GROWTH
ECONOMIC OUTLOOK
MONETARY POLICY
FISCAL TRENDS
TRADE
LABOR PRODUCTIVITY
SERVICES SECTOR
SERVICES TRADE
MANUFACTURING EXPORTS
DISTRIBUTION
POLITICAL ECONOMY
VALUE CHAIN
MANUFACTURING SECTOR
World Bank
Ethiopia Economic Update : The Inescapable Manufacturing-Services Nexus
geographic_facet Africa
Ethiopia
description Ethiopia’s gross domestic product (GDP) growth is estimated to have rebounded to 10.9 percent in FY2017. According to official statistics, Ethiopia’s annual rate of economic growth, which averaged 10.3 percent over 2005/06-2015/16 (compared with the regional average of 5.4 percent), slowed to 8 percent in FY2016 due to drought-related lower agricultural production. With agricultural recovery, gross domestic product (GDP) growth rebounded in FY2017. The pursuit of prudent fiscal policy, with a fiscal deficit at 3.4 percent of GDP, should help keep inflation under control, providing monetary conditions remain tight in the aftermath of the devaluation of the Birr in October 2017. Key challenges relate to poor export performance (Ethiopia’s growth has been driven by investment followed by private consumption) and weak trade balance, which reflect the lack of external competitiveness and the vulnerability to terms of-trade shocks. The rising risk of external debt distress may affect Ethiopia’s access to external finance. These developments require continued policy adjustment to crowd-in the private sector and strengthen Ethiopia’s competitiveness. Part one of this Economic Update, on recent economic developments and outlook, discusses Ethiopia’s growth strategy, emphasizing the sustainability of the country’s investment-focused and export-led growth model. Part two looks at the interlinkages between manufacturing and services, with a special focus on the role of distribution services in promoting Ethiopia’s export competitiveness and eventually its structural transformation.
format Report
author World Bank
author_facet World Bank
author_sort World Bank
title Ethiopia Economic Update : The Inescapable Manufacturing-Services Nexus
title_short Ethiopia Economic Update : The Inescapable Manufacturing-Services Nexus
title_full Ethiopia Economic Update : The Inescapable Manufacturing-Services Nexus
title_fullStr Ethiopia Economic Update : The Inescapable Manufacturing-Services Nexus
title_full_unstemmed Ethiopia Economic Update : The Inescapable Manufacturing-Services Nexus
title_sort ethiopia economic update : the inescapable manufacturing-services nexus
publisher World Bank, Washington, DC
publishDate 2018
url http://documents.worldbank.org/curated/en/811791526447120021/The-inescapable-manufacturing-services-nexus-exploring-the-potentialof-distribution-services
http://hdl.handle.net/10986/29919
_version_ 1764470710851338240

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