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Ethiopia 9th Biggest Economy in Africa - World Bank
Ethiopia is the ninth biggest economy in Africa when measured in Purchasing Power Parity (PPP), according to the latest report from the World Bank. Ethiopia is also one of the cheapest economies in the world measured by Price Level Index (PLI) according to World Bank. Ethiopia's GDP in PPP is $42.5 Billion, which accounts for 0.08% of World economy. Ethiopia's GDP per capita measured in PPP is $591.
The African economy is dominated by South Africa, Egypt, Nigeria, Morocco, and Sudan, which collectively account for nearly two-thirds of the region’s GDP.
The 10 Biggest Economies in Africa
1. South Africa $397.5
2. Egypt, Arab Rep. $353.5
3. Nigeria $247.3
4. Morocco $107.1
5. Sudan $79.6
6. Tunisia $64.8
7. Angola $55.0
8. Kenya $47.9
9. Ethiopia $42.5
10. Tanzania $35.9
GDP in PPP$ Billion
African Countries with highest GDP per capita
African Countries with the lowest GDP per capita
Source: World Bank
The Price Level Index (PLI) shows which economies are the most and least expensive. It corresponds to travelers’ experience of making purchases after converting their currency at market exchange rates. The Price Level Index is the ratio of a country’s PPP divided by its exchange rate to the US dollar. An index over 100 means prices are higher on average than in the US, and one less than 100 means prices are relatively lower.
The most expensive economies are Iceland, Denmark, Switzerland, Norway, and Ireland with indices ranging from 154 to 127. The United States ranked 20th in the world, lower than most other high-income economies, including France, Germany, Japan, and the United Kingdom.
The range is greater at the other end of the spectrum with more than 40 economies showing a PLI of 40 or below. The cheapest economies are Tajikistan, Ethiopia, Gambia, Kyrgyz Republic, and Bolivia.
The report also added
Twelve economies account for more than two-thirds of the world’s output. Seven of them are high-income economies (United States, Japan, Germany, the United Kingdom, France, Italy and, Spain), and five are developing or transitional economies (China, India, Russia, Brazil, and Mexico). The five largest developing economies account for more than 20 percent of global output and over 27 percent of the world expenditures for investment purposes
Measured by GDP per capita, the five richest economies are Luxembourg, Qatar, Norway, Brunei Darussalam, and Kuwait. Collectively, they account for less than 1 percent of the world’s output. Seventeen economies have a GDP per capita of less than $1,000. The world average is approximately $8,900 per capita.
i dont get it if any one understand what the diferce is between the ppl and ppp drop me an emaill at firstname.lastname@example.org
wow wowwow wow hey guys do u think
that’s true about Ethiopia
i don’t think so if that is really
i’m so happy man wow
Whatever the measurement stick and the motives are, that Ethiopia came 9th in African econometrix is good news.
Merry Christmas and a Happy New Year to all!
God bless Ethiopia and those who stand for the African poor.
wow, #9 economy in Africa!!! God bless Meles zenawi!!!!!!
nazret.com you forgot to include that ethiopia is also one of the fastest growing economy in africa at nearl 10% GDP a year.
if you take out the Oil power african countries, i think ethiopia is actually #1 fastest growing economy in africa!!!!
GOD BLESS MELES ZENAWI!!!
This is Ethiopia $42.5 today. what about Eritrea? none nada not even mentioned on the world bank article. Its a shame on Shabia the little African Singapore dream economy.
Well, half brain diaspora this is today about Ethiopia. What is next? we are eagerly waiting to hear your input on the issue.
Ethiopia for ever.Yeha
Yeha, Ethiopian wanna be Weyane.
You are sooooooo obbesed with Eritrea. It’s unbelievable.
I am pretty sure, if CUD and other bandas stop disturbing Ethiopia we could have done it better, but what can we do, we are currently living with so called elites who havent accepted their defeat. The so called CUD, ONLF,OLF and others r disturbing us, they are becoming a pain in the bum, we couldnt settle for a minute. can you imagine where we could be if these start to use their brain?? Anyway, we don have to wait them, if they continue blocking our way, we may need to take the last language which they understand, thats use of force to use the obstacle. Ok Guys, its a good news, and we are happy to hear this. Ethiopia will be second world economy in the coming few years. We need to have stability built on the graveyard of OLF,ONLF,and elderly and devided CUD.
-This is an outdated and inaccurate report by the world bank. I dislike woyane but our economy is doing much better then this.
-You have to remember that GDP is a poor indicator of wealth. It does not include the “informal market” of which most of africas economic transactions take place in. It also does not include things like housework done by a person and most importantly the expense of food, clothing and shelter by subsistence farmers which most Ethiopians are. GDP also counts the negative things in a rich nation like prisons and environmental degrading output. GDP also does not count the inequality in countries like equatorial Guinea where family owns all the wealth.
- yonas, The exchange rate is the amount of money the country makes in International dollars, The PPP is the purchasing power parity and that the amount of goods that you can buy with a dollar in ethiopia. It is basically the cost of living. In ethiopia the average person earns $170 but he is able to buy $1000 dollars worth of goods because things are so cheap there.
-Ethiopias economy is not 42 billion Purchasing power parity it is 74 billion(2006) going on 80 billion(2007)
- The exchange rate for Ethiopia is 13.3 billion dollars(2006) and it will be 15 billion for this year (2007)
So our GDP for the year of 2006 was 13.3 bl( exchange rate) and 74 bl. (purchasing power parity. Our GDP per person is $1000 (purchasing power parity) and 170 (exchange rate) Our economy is probably growing at about 7% but we do have a population growth rate of 2.5-3% which negates a lot of that growth.
- These stupid figures make us look poorer then we already are and people should ignore them. A better indicator is the human development index and that too should be looked at skeptically. I estimate that if you include the Informal market, The substance farmers uncounted income and other economic activities that dont make it on the official GDP that the average ethiopian lives on about $4,000 dollars(PPP) a year. Remember that our informal market is more then double our official GDP output. Our “real” economic output for the country can easily be 300 billion(PPP).
- In conclusion, GDP does not do a good job of counting wealth. ” No one lives on less then a dollar a day” and we are better of economically then most people think. The best way to know about ethiopia is to see what is happening on the ground then these empty figures. I would love to see us improve but with woyanes communist ownership of everything and there ethnic divide and rule i dont have good hope.
Yeha, congra brother, this is where our country is, we need to be proud of the current leadership. VIVA TPLF/EPRDF, we need to be proud of our nation, we will stand by the leadership, the divided and chauvinist CUD has began its painfull journey down the hill with out a fire of a shot. This proves our strategy can work, long live democratic and voluntarily united ETHIOPIA,,,,
this is an amesing news to tigrayan people and to our belived sans of TPLF thanks priminster meles and our people of tigray .
we know this is a heart breaking news for Cud
with their dum thinking.
there is no ethiopia
but ther is tigray
via to tigray people strugle.
Yeha, Leave Eritrea alone. They are at least independent of aid and mostly self sufficient and when did they become the measuring stick for everything and what happened to meles’s Albania or was it Yugoslavia.
Remember that Ethiopia has 80 million people and being the 9th biggest means nothing. We are still the poorest in Africa per person. That is If you take these figures seriously.
We need to have less children because our growth rate of around 7% is getting eaten up by the pop growth rate of 2.5 to 3%. That would be a 4 to 4.5% growth rate. to slow for development. If you take woyanes bogus rate of 10% it is 7 to 7.5% with the pop growth rate put in, which is good. Countries growing at 10% over 5 years are going through economic revolutions(south Korea, singapore) and that is not happening in mama Ethiopia.
Ethiopia is doing decent but it needs to really improve for us to change the lives of our people.
hehehehe… Ihave nathing 2 say, but wowowowwww. This`s good news peopil. say “Good bless Meles together” Mr Meles stay 4 ever. We need U man. I love uuuuuuu!!!!
Not a bad news, but the Country still nees
to invest more on Education to foster viable economical prospect and fight Corruption to stimulate investments by the Foreign Investors.
Happy X mas all!
I THINK ETHIOPIA IS # 03. CORECTION.
WoW!!! ethiopia $42.5 today. tomorrow will be $85.0. anyway if it is true that is good
Here is how I understand the differce between PPP adn PPI
Let us say that you buy one big mac meal in the US for $5. In Ethiopia, let us say that you buy the same big mac for 50 birr. If the exchange rate for $1 is 10 birr, you are buying one big mac for the same price in both Ethiopia and the US. If there is no market failure, i.e. if you can exchange Ethiopian birr for US dollar as you want, the purchasing power of the US dollar and the Ethiopian birr is the same. The exchange rate between the US and Ethiopia is in equilibrium.
The reason that Ethiopia is identified as one of the cheapest economy is that you can buy one big mac in Ethiopia for less than 50 birr, which is less than $5 dollar.
Simply put, PPI (i.e producer price index) is an index measures the average change over time in selling prices received by domestic producers of goods and services. Let us say that we have two producers (a wheat farmer and pasta processor) in the economy. Again, suppose that in 2006, the farmer produced 10 quintals of wheat and sold it for 5000 birr a quintal. The pasta factory produced 10 quintals of pasta and sold it for 1000 birr.
10 quintals*500 birr=5000
10 quintals of past*1000=10,000.
The total will be 15,000 birr.
Now, let us say, in 2007 the price of wheat increased from $500 to 600 birr and that of pasta increased from 1000 to 1200 birr in 2007.
10 quintals*600 birr=6000
10 quintals of past*1200=12,000.
The total will be 18,000 birr.
Now, divide 18,000 by 15,000 and you will get 120%. Therefore, the producer price has increased by 20% in 2007.
[Thank You Selamu]
i could swear i saw another report that said our GDP was just $14 billion. Now its $40 billion. who knows, maybe i read something wrong before. But just remember this . Egypt has the same population as us, 80 million people, and they are still poor even with a $353 billion GDP. South africa just has 40 million people, half of our country, and they still have huge problems with $397 billion. We, starting at just $40 billion have a long, long way to go still before we can even be as rich as the south africans or egyptians. a long way to go. Allah bless us, keep us UNITED and give us peace.
[Tiqour Ambessa, I think you are referring to the GDP measured using official exchange rates. The number above is based on Purchasing Power Parity. I am no expert in this area, but you may want to read about PPP here. I am sure we have visitors who know a whole lot about this and look forward to reading them. ]
Great Job EPRDF and the ppl Ethiopia who r working day and night. God bless ethiopia. my wish and hope is to be #1 in 10 years.
Even the World Bank is becoming a
Woyane propoganda machine.
Indeed This is a very good news to Ethiopia.
If the current pace of development
continues as it is Ethiopia will surely
have the third spot, God Willing, in the next ten years.
nowadays Ethiopia is geting the recognition that it deserves, I know its bad news for the opposition, but who cares they can say what ever they want the STATS show a growing Ethiopia and I beleve that,
A freind of Mine in Addis wrote to me telling me Addis will be the next Johansburg in a few years and by the way my freind is not Even Ethiopian he is Cameroon so tell me why does he have to lie about any thing CUDIES?
Thanks for the info HERMAN INGU
even though Ethiopia is not your country, it is your adopted country, LONG LIVE AFRICA LONG LIVE ETHIOPIA
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