East Africa’s biggest Economy
According to the International Monetary Fund (IMF) recent numbers, Ethiopia’s gross domestic product (GDP) this year is expected to rise to $ 78 billion from $72 billion which was recorded last year.
Ethiopia’s economic growth since 2015 has been at 10.8% which has contributed to the gap in between them and Kenya. The gap between the two countries is about $29 million.
Ethiopia’s economic growth has been brought about by a lot of spending of the public resources on infrastructure. The country has also become a preferred destination for some Chinese investors.
The IMF report says that non-resource-intensive countries like Senegal, Ethiopia, Ivory Coast and Kenya generally continue to grow greatly due to the high levels of public spending and strong domestic demand.
Another factor that gives Ethiopia an upper hand is the country’s huge population which almost doubles that of Kenya.
Ethiopia economy has been rising steadily since 2015 due to the government’s move to modernize and upgrade its roads, power plants and railways. The country is on the way to having Africa’s biggest hydroelectric dam on completion of the Grand Ethiopia Renaissance Dam (GERD).
Ethiopia is landlocked, but it continues to make significant steps in trying to industrialize. The country is now connected to Djibouti’s Red Sea Port through an electric railway that was opened last October.
The country announced huge profits in power supplied to Neighbouring countries including Djibouti and Sudan. They also have agreements to supply Kenya and Tanzania as their electricity generation capacity increases.