Ethiopian growth sparks optimism.

Position:Brief article

Ethiopia is of interest as a developing nation because of the huge size of its consumer base of 75-million people. It is the second most populated country in sub-Saharan Africa (after Nigeria). On November 18, 2006, the Ethiopian Reporter (Addis Ababa) published a story reacting to a review of the Ethiopian economy by The Economist (London) and it was interesting to see the selection of items this local newspaper chose.

The first item the Reporter highlighted was the growth in GDP as understood by The Economist. Ethiopia has been growing over the past four years, largely based on the success of its agricultural sector. The CIA's World Factbook publishes a 2005 estimate of the composition by sector of Ethiopia's economy with agriculture accounting for nearly 48 percent of GDP. Ethiopia's location, in the Horn of Africa (East Africa) subjects the country to a disastrous cycle of flood and drought and these economic shocks are a considerable hindrance to the growth of the economy.

The...

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