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Periodical article | Leiden University catalogue | WorldCat |
Title: | Ethiopia's Balance of Payments 1975-1985 |
Author: | Chole, Eshetu |
Year: | 1989 |
Periodical: | Journal of Ethiopian Studies |
Volume: | 22 |
Period: | November |
Pages: | 1-11 |
Language: | English |
Notes: | biblio. refs., ills. |
Geographic terms: | Ethiopia Northeast Africa |
Subjects: | balance of payments Economics and Trade international relations Economics, Commerce Economic statistics |
External link: | https://www.jstor.org/stable/41965975 |
Abstract: | An overview of Ethiopia's balance of payments during the period 1975-1985 shows a sobering overall picture. The size and rate of growth of the current account deficit is disturbing. In 1984/1985, it was more than five times greater than it was ten years earlier. As a ratio of GDP, it had risen to almost 9 percent in 1984/1985. Factors contributing to this deficit include the disappointing performance of Ethiopian exports, and the considerable discrepancy in the rates of growth of imports and exports (in 1984/1985 merchandise exports could only finance 37 percent of merchandise imports). The current account deficit has inevitably meant a recourse to capital transfers from abroad or drawing down on reserves of foreign exchange. As a corollary of this there has been an appreciable increase in the country's indebtedness and its debt service ratio. At the end of 1985 total external debt disbursed and undisbursed stood at more than Birr 6 billion, and the debt service ratio had risen from less than 5 percent in the early 1970s to more than 27 percent in 1985/1986. Given worsening borrowing conditions internationally, these developments give ample cause for alarm. The prospects for relaxing Ethiopia's external resource constraint are dependent on the possibilities for boosting exports, curbing imports, and obtaining generous grants and loans, none of which are bright. Note, ref. |