Source: Bussiness Info Ethiopia

Addis Ababa, Ethiopia 9 (10 February 2023)

The recent fiscal year in Ethiopia has seen a deceleration in economic growth, with a GDP growth rate of 6.4%. While this figure may appear modest in comparison to the previous five-year average of 9%, it is essential to acknowledge the impact of global and conflict conditions on the economy.

Despite these challenges, the services sector demonstrated resilience with a robust growth of 7.6%, reflecting expansion in government spending and a post-COVID recovery in transport, hotels, and tourism. Meanwhile, the agriculture sector also contributed to the overall growth with an expansion of 6.1%. In contrast, the industry sector struggled to keep pace, with the construction sector growing at a mere 5% and the manufacturing sector facing limitations due to foreign exchange constraints and obstacles related to ease of doing business.

The most recent six-month data also presents a mixed picture for the Ethiopian economy, with indications of strength in the services and agriculture sectors, but weakness in exports and industry. Exports have decreased by 7%, industrial park output has decreased by 26%, and cement production has decreased by 23%. Despite these setbacks, growth is still being seen in the service sector and the dominant agricultural sector.

Source: Cepheus Capital


The opinions expresses here in the post "Services and Agriculture Thrive, Exports and Industry Struggle in Ethiopia" are those of the individua's contributor(s) and do not necessarily reflect the views of Business Info Ethiopia , BIE Intelligence PLC, its publisher, editor, or any of its other contributors.


Hanna is an aspiring economist in her final year at Addis Ababa University. She has written hundreds of insightful daily stories, analyses, and features about the Ethiopian economy and beyond.

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