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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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 |
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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 |