Ethiopia profile

Demography and Health

Ethiopia’s population reached about 132.1 million in 2024, making it the 10th most populous country in the world and signaling a large, youthful demographic potential. The birth rate remains high at 31.9 births per 1,000 people in 2023, suggesting rapid population growth if fertility remains elevated. The crude death rate is 5.96 per 1,000 people (2023), a rate that points to ongoing health challenges but also to improvements in survival relative to many lower-income contexts. Life expectancy at birth stands at 67.3 years in 2023, underscoring substantial health gaps compared with more developed nations. Under-5 mortality is 46.5 per 1,000 live births (2023), highlighting persistent child health and nutrition needs. Prevalence of undernourishment is 22.2% (2022), indicating that a sizable share of the population faces chronic food insecurity that can hamper growth and productivity. The health system indicators show physicians per 1,000 people at 0.108 (2022) and current health expenditure at 2.85% of GDP (2022), with domestic health expenditure per capita (PPP) at 19.9 international dollars (2022), suggesting that health resources are relatively scarce and financing remains a critical constraint for expanding coverage and quality of care. Net migration reached about 30,069 in 2024, indicating a modest level of outward movement but not dominating the country’s demographic dynamics. Taken together, these figures portray a young, rapidly growing country facing substantial health and nutrition challenges, which will require scaling up affordable healthcare, maternal and child health services, and nutrition programs to sustain long-term development.

Economy

Ethiopia’s economy exhibits a low income profile, with GDP per capita (current US$) around 1,011 in 2022, and a higher but still modest GDP per capita on a purchasing power parity basis at about 3,278 (2024). The country has struggled with high inflation, recorded at 21.0% in 2024, which erodes purchasing power and complicates macroeconomic planning for households and firms. The unemployment figure listed (3.94% in 2021) is relatively low in percentage terms, but given the large and young population, even a small unemployment rate translates into substantial absolute joblessness in the labor market, and informal employment is likely prevalent. Ethiopia shows a notable reliance on energy and natural resources rather than manufacturing-led growth, with a high share of renewables in final energy consumption (90.6% in 2021), suggesting a potential competitive advantage in green energy if scaled and integrated with industry. Domestic and external finance indicators reveal moderate openness: foreign direct investment net inflows at 2.89% of GDP in 2022 indicate limited but meaningful external investment, while the current account balance sits at −2.92% of GDP in 2023, reflecting a deficit that funds investment but also raises currency and debt management considerations. The economy engages in trade with exports representing 5.55% of GDP in 2024 and imports 11.8% of GDP in 2024, signaling a relatively inward-intensive trade structure for a developing economy and room for diversification to raise export competitiveness. High-technology exports amount to about 9.86 million US$ in 2023, indicating nascent but growing participation in knowledge-intensive sectors. Overall, the Ethiopian economy is characterized by a large population, macroeconomic volatility, and a transition path guided by improving governance, investment, and export diversification.

Trade and Investment

Trade and investment dynamics in Ethiopia show relatively modest export intensity, with exports of goods and services as a share of GDP at 5.55% in 2024 and imports at 11.8% of GDP in 2024, suggesting a trade structure dominated by domestic demand and limited external leverage from trade. Foreign direct investment (FDI) net inflows total 2.89% of GDP in 2022, reflecting a still cautious but gradually expanding role for private capital in the economy. The current account balance stands at a deficit of 2.92% of GDP in 2023, indicating a need to finance the gap through capital inflows or reserves, and highlighting external vulnerability to terms of trade and capital flows. These indicators together imply meaningful room to boost trade competitiveness, diversify exports beyond primary sectors, and attract higher-quality investment by strengthening institutions, rule of law, and regulatory quality (which are currently rated negatively by global indicators). The energy profile, with high renewable energy usage (90.6% of total final energy consumption in 2021), provides a potential platform to support industrialization and export-oriented sectors if infrastructure and governance reforms accompany investment.

Governance and Institutions

Governance indicators suggest substantial challenges: Political stability and absence of violence/terrorism score −1.97 (2023) with a rank of 186, regulatory quality at −1.02 (rank 171), and rule of law at −0.67 (rank 145). Control of corruption is −0.465 (rank 119) and government effectiveness is −0.769 (rank 149), all signaling perceived weaknesses in institutions, enforcement, and public service performance. Such scores typically reflect vulnerability to political shocks, regulatory unpredictability, and limited capacity to deliver reforms. In this context, improving governance requires strengthening checks and balances, enhancing anti-corruption measures, and investing in transparent, predictable regulatory processes to attract investment, support private sector development, and broaden access to services. The data collectively imply that institutional progress is a prerequisite for achieving sustained growth, social equity, and resilience against shocks.

Infrastructure and Technology

Infrastructure and technology indicators show both constraints and potential. Internet use is 16.7% of the population (2021), signaling limited digital penetration that constrains inclusion in a digital economy. Physicians per 1,000 people are 0.108 (2022), reflecting scarce specialist healthcare capacity and the need for training and retention policies to expand access to health services. High-technology exports reach 9,855,262 US$ (2023), indicating beginning diversification into advanced sectors, though the numerator remains small relative to the country’s size. Renewable energy consumption accounts for 90.6% of total final energy consumption (2021), implying strong potential for sustainable electricity generation and export of green energy services if backed by investment in transmission, grid reliability, and storage. Current health expenditure is 2.85% of GDP (2022), with domestic general government health expenditure per capita, PPP at 19.9 (2022), suggesting a modest but growing public health budget. Overall, Ethiopia faces infrastructure gaps in connectivity and healthcare capacity but benefits from a favorable energy mix that could enable broader development if complemented by policy and investment reforms.

Environment and Sustainability

Environmental and sustainability indicators show a country with notable resource pressures and opportunities. Level of water stress—freshwater withdrawal as a share of available resources—is 32.3% (2021), indicating significant but not extreme water resource competition that could intensify with population and agricultural demand if not managed through efficiency and governance. Total greenhouse gas emissions, excluding LULUCF per capita stand at 1.32 t CO2e per capita (2023), pointing to lower per-person emissions relative to many peers but with growth potential as the economy industrializes. Prevalence of undernourishment remains a concern at 22.2% (2022), underscoring the link between environmental conditions, agriculture, and nutrition. The heavy reliance on renewable energy (90.6% of final energy) is a notable strength for climate resilience and long-term sustainability, especially if combined with investment in infrastructure to support industrial development and energy access for rural populations. Collectively, the environmental profile suggests both vulnerabilities in water and food security and a strategic opportunity to leverage renewables for sustainable growth and climate adaptation.