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In 2000, Ethiopia, the second-most populous country in Africa, was the third-poorest country in the world. Its annual GDP per capita was only about $650. More than 50% of the population lived below the global poverty line, the highest poverty rate in the world.
What has happened since is miraculous. According to IMF estimates, from 2000 to 2016, Ethiopia was the third-fastest growing country of 10 million or more people in the world, as measured by GDP per capita. The country’s poverty rate fell to 31% by 2011 (the latest year Ethiopia’s poverty level was assessed by the World Bank)...
Ethiopia’s economy is concentrated in the services and agriculture sectors. The World Bank estimates that of the 10.8% average annual growth recorded by Ethiopia between 2004 and 2014, half came from services, like hospitality and transportation, which was mostly a result of country’s urbanization (pdf). Agriculture, meanwhile, accounted for 3.6% of the growth during the period. Improved agriculture production was mostly a result of the adaptation of improved seeds and chemical fertilizer, according to International Food Policy Research Institute. Manufacturing, though a small portion of the economy, is burgeoning, growing at more than 10% per year. A recent study by the Center for Global Development, a US think tank, concluded that Ethiopia was the most likely country in Africa to become the “New China.”