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Economy of Estonia

The economy of Estonia is rated advanced by the World Bank, i.e. with high quality of life and advanced infrastructure relative to less industrialized nations. Estonia is a member of the European Union, eurozone and OECD The economy is heavily influenced by developments in the Finnish and Swedish economies.

After Estonia restored its independence in 1991 and became a market economy, it emerged as a pioneer in the global economy. Estonia styled itself as a bridge between East and West, adopting significant economic reforms and technological innovations. In 1992, the country adopted the Estonian kroon as its currency, this stabilised the economy. In 1994, it became the first country in the world to adopt a flat tax, with a rate of 26% regardless of personal income. Estonia received more foreign investment, per person, in the late 1990s than any other country in Central and Eastern Europe. The country has been catching-up with the EU-15 - the richer European countries. Its GDP per capita grew from 35% of the EU-15 average in 1996 to 65% in 2007, similar to Central European countries. Income per person was $49,000 in 2023 according to the IMF; this was between Poland and Portugal, but below Spain.

For Estonia, the 2007–2008 financial crisis was easier to weather, because its budget has consistently been kept balanced, and this meant public debt relative to GDP remained the lowest in Europe. The economy recovered in 2010. In January 2011, Estonia adopted the euro, joining the eurozone. Estonia has demonstrated resilience, with a strong service sector, particularly in IT due to the Tiigrihüpe project, and advanced e-government services. Estonia's commitment to a circular economy, innovation and its success in maintaining a balanced budget, low public debt, and a competitive tax system have positioned it as a model of economic reform and growth in post-Soviet Europe.

History
In the decades prior to World War I and independence, during the Czarist rule a rather large industrial sector developed in Estonia. For example, the Kreenholm Manufacturing Company was then the world's largest cotton mill.

Independence
After declaring independence in 1918, the Estonian War of Independence and the subsequent signing of the Treaty of Tartu in 1920, the new Estonian state inherited a ruined post-war economy and an inflated ruble currency. Despite considerable hardship, dislocation, and unemployment, Estonia spent the first decade of independence entirely transforming its economy. In 1918, The Czarist ruble was replaced by the Estonian mark, which was in circulation until 1927. By 1929, a stable currency, the kroon, had been established. It was issued by the Bank of Estonia, the country's central bank. Compensating the German landowners for their holdings, the government confiscated the estates and divided them into small farms, which subsequently formed the basis of Estonian prosperity. Trade focused on the local market and the West, particularly Germany and the United Kingdom. Only 3% of all commerce was with the USSR.

Historically, Estonia's economy was agricultural, modernising significantly post-independence from Russia in 1918. There was a notable knowledge sector in Tartu and expanding industrial sector, exemplified by the Kreenholm Manufacturing Company. Western European markets were familiar with Estonian dairy, with the main trade partners being Germany and the UK; only 3% of commerce was with the neighbouring USSR. Estonia and Finland had a similar standard of living. USSR's annexation of Estonia in 1940 and destruction during World War II crippled the economy. Post-war Sovietization continued, with the integration of Estonia's economy into the USSR's centrally-planned structure.

Soviet occupation
The USSR's forcible annexation of Estonia in 1940 and the ensuing Nazi and Soviet destruction during World War II crippled the Estonian economy. Post-war Soviet occupation and Sovietisation of life continued with the integration of Estonia's economy and industry into the USSR's centrally planned structure. More than 56% of Estonian farms were collectivised in the month of April 1949 alone after mass deportations to Siberia the previous month. Moscow expanded on those Estonian industries which had locally available raw materials, such as oil shale mining and phosphorites.

Restoration of independence, modernisation and liberalisation
After Estonia restored its independence in 1991 and became a market economy, it emerged as a pioneer in the global economy. Estonia styled itself as a bridge between East and West, adopting significant economic reforms and technological innovations.

In June 1992, Estonia replaced the ruble with its own freely convertible currency, the kroon. A currency board was created and the new currency was pegged to the German Mark at the rate of 8 Estonian kroons per Deutsche Mark. When Germany introduced the euro the peg was changed to 15.6 kroons per euro.

In 1994, it became the first country in the world to adopt a flat tax, with a rate of 26% regardless of personal income. Between 2005-2008, this was reduced to 21% over several steps.

In early 1992, both liquidity problems and structural weakness stemming from the communist era precipitated a banking crisis. As a result, effective bankruptcy legislation was enacted and privately owned; well-managed banks emerged as market leaders.. The fully electronic Tallinn Stock Exchange opened in early 1996, and was purchased by Finland's Helsinki Stock Exchange in 2001. Estonia joined the World Trade Organization in 1999.

From the early 2000s to the latter part of that decade, the economy experienced considerable growth. In 2000, Estonian GDP grew by 6.4%. After accession to the European Union in 2004, double-digit growth was soon observed. GDP grew by 8% in 2007 alone. Increases in labor costs, the imposition of tax on tobacco, alcohol, electricity, fuel, gas, and other external pressures (growing prices of oil and food on the global market) inflated prices in 2009.

2008 financial crisis, response and recovery
The financial crisis of 2007–2008 had a deep effect on the economy, primarily as a result of an investment and consumption slump, that followed the burst of the real estate market bubble that had been building up. In December 2008, Estonia became a donor country to the IMF-led rescue package for Latvia. In response to the crisis, the Ansip government opted for fiscal consolidation and retrenchment by maintaining fiscal discipline and a balanced budget in combination with austerity packages: The government increased taxes, and reduced public spending by slashing expenditures and public salaries across the board.

After a long period of very high growth of GDP, the GDP of Estonia decreased. In the first quarter 2008, GDP grew only 0.1%, and then decreased: negative growth was −1.4% in the 2nd quarter, a little over −3% (on a year-to-year basis) in the 3rd quarter, and −9.4% in the 4th quarter of that year.

The government made a supplementary negative budget, which was passed by the Riigikogu. The revenue of the budget was decreased for 2008 by EEK 6.1 billion and the expenditure by EEK 3.2 billion. A current account-deficit was extant, but began to shrink in late 2008. In 2009, the economy further contracted by 15% in the first quarter. Low domestic and foreign demand depressed the economy's overall output. The economy's 34% industrial production drop was the sharpest decrease in industrial production in the European Union. Estonia was one of the five worst-performing economies in the world in terms of annual growth, and had one of the hightest rates of unemployment in the EU, which rose from 4% in May 2008 to 16% in May 2009.

In July 2009, the value-added tax was increased from 18% to 20%. The recorded budget deficit for 2009 was just 1.7% of GDP. The result was, that Estonia was one of only five EU countries in 2009 that met the Maastricht criteria for debt and deficit, and had the third-lowest deficit after Luxembourg and Sweden; Estonia did not ask for support from the IMF. Despite the third-largest drop in GDP, the country had the lowest budget deficit and lowest public debt among Central and Eastern European countries. In 2009, the Estonian economy began to rebound, and economic growth resumed in the second half of 2010. The country's unemployment rate dropped significantly to pre-recession levels. To top it off, Estonia was granted permission in 2010 to join the eurozone in 2011.

Joining the euro
Before joining the eurozone, the Estonian kroon had been pegged to the euro at a rate of 15.64664 EEK to one euro; before then, the kroon was pegged to the German mark at approximately 8 EEK to 1 DEM.

The design of Estonian euro coins was finalized in late 2004. Estonia's journey towards the euro took longer than originally projected, owing to the inflation rate continually being above the required 3% before 2010, which prevented the country from fulfilling the entry criteria. The country originally planned to adopt the euro on 1 January 2007 and officially changed its target date twice: first to 1 January 2008, and later to 1 January 2011.

On 12 May 2010, the European Commission announced that Estonia had met all criteria to join the eurozone. On 8 June 2010, EU finance ministers. In July 2010, Estonia received the final approval from ECOFIN to adopt the euro onwards from 1 January 2011; on that date Estonia became the 17th eurozone member state and circulated alongside the kroon until 14 January 2011. With that, Estonia became one of the first post-Soviet states to join the eurozone.

In August 2011, Standard & Poor's raised Estonia's credit rating from A to AA-. Among various factors, S&P cited as contributing to its decision was confidence in Estonia's ability to "sustain strong economic growth." Estonia's GDP growth rate in 2011 was above 8%, despite having negative population growth.

The Estonian economy was hit by the COVID-19 recession before bouncing back with an 8.6% rise in GDP in 2021, this was followed by the economic effect of the Russian invasion of Ukraine in February 2022 resulting in a fall in GDP of 1.3% in 2022 and high inflation which hit 24% before falling to single digits in 2023.

The economy today
"Since reestablishing independence, Estonia has styled itself as the gateway between East and West and pursued economic reform and integration with the West." Estonia's market reforms put it among the economic leaders in the former COMECON area. A balanced budget, almost non-existent public debt, flat-rate income tax, free trade regime, adoption of the euro, competitive commercial banking sector, hospitable environment for foreign investment, innovative e-Services and mobile-based services are hallmarks of Estonia's free-market-based economy.

The privatisation of state-owned firms is virtually complete, with only the port and main power plants remaining in government hands. The constitution requires a balanced budget, and the protection afforded by Estonia's intellectual property laws is similar to that of the EU. Near-ideal conditions for the banking sector exist. Foreigners are not restricted from buying bank shares or acquiring majority holdings.

In 2013, the average monthly gross wage in Estonia was €980 (US$1,330). This figure has grown consistently to €2,065 (US$2,217) as of December 2023.

Projections and circular economy
In 2011, according to projections made by CEPII by 2050, Estonia could become the most productive country in the EU, after Luxembourg, and so join the top five most productive nations in the world.

According to the Ministry of Environment, Estonia committed to developing a circular economy strategic document and action plan by 2021. In March 2020, the Estonian Circular Economy Industries Association, specified that Estonia should consider the new European Green Deal and principles of circular economy when making investments to recover the economy after Covid.

Employment participation

Estonia has around 600,000 employees, yet the country has a shortage of skilled labor, and since skill shortages are experienced everywhere in Europe, the government has increased working visa quota for non-EEA citizens, although it has nevertheless been criticized for being inadequate for addressing the shortages.

The late-2000s recession in the world, the near-concurrent local property bust with changes in Estonian legislation to increase labour market flexibility (making it easier for companies to lay off workers) saw Estonia's unemployment rate shoot up to 18.8% throughout the duration of the crisis, then stabilise to 13.8% by summer 2011, as the economy recovered on the basis of strong exports. Internal consumption, and therefore imports, plummeted; and cuts were made in public finances. Some of the reduction in unemployment has been attributed to some Estonians' emigrating for employment to Finland, the UK, Australia, and elsewhere.

After the recession, the unemployment rate went lower, and throughout 2015 and 2016, the rate stayed near the levels that preceded the economic downturn, staying at just above 6%. In 2020-2023 the unemployment rate moved around between 5.2% and 7.7%.

Sectors
Tallinn has emerged as the country's financial center. According to Invest in Estonia, advantages of Estonian financial sector are unbureaucratic cooperation between companies and authorities, and relative abundance of educated people although young educated Estonians tend to emigrate to western Europe for greater income. The largest banks are Swedbank, SEB Pank, and Nordea. Several IPOs have been made recently on the Tallinn Stock Exchange, a member OMX system.

The Estonian service sector employs over 60% of workforce. Estonia has a strong information technology (IT) sector, partly due to the Tiigrihüpe project undertaken in mid-1990s, and has been mentioned as the most "wired" and advanced country in Europe in the terms of e-government.

Farming, which had been forcibly collectivized for decades until the transition era of 1990–1992, has become privatized and more efficient, and the total farming area has increased in the period following Estonia's restoration of independence. The share of agriculture in the gross domestic product decreased from 15% to 3.3% during 1991–2000, while employment in agriculture decreased from 15% to 5.2%.

The mining industry makes up 1% of the GDP. Mined commodities include oil shale, peat, and industrial minerals, such as clays, limestone, sand and gravel. Soviets created badly polluting industry in the early 1950s, concentrated in the north-east of the country. Socialist economy and military areas left the country highly polluted, and mainly because of oil shale industry in Ida-Virumaa, sulfur dioxide emissions per person are almost as high as in the Czech Republic. The coastal seawater is polluted in certain locations, mainly the east. The government is looking for ways to reduce pollution further. In 2000, the emissions were 80% smaller than in 1980, and the amount of unpurified wastewater discharged to water bodies was 95% smaller than in 1980.

Estonian productivity is experiencing rapid growth, and consequently wages are also rising quickly, with a rise in private consumption of about 8% in 2005. According to Estonian Institute of Economic Research, the largest contributors to GDP growth in 2005 were processing industry, financial intermediation, retailing and wholesale trade, transport and communications.

Agriculture
Estonia produced in 2018:

 * 450 thousand tons of wheat;
 * 347 thousand tons of barley;
 * 113 thousand tons of rapeseed;
 * 88 thousand tons of potato;
 * 78 thousand tons of oat;
 * 53 thousand tons of pea;
 * 29 thousand tons of rye;

In addition to smaller productions of other agricultural products.

Largest companies by profit
In 2022, the sector with the highest number of companies registered in Estonia is Services with 144,514 companies followed by Finance, Insurance, and Real Estate and Retail Trade with 47,001 and 26,635 companies respectively.

Infrastructure
Railway transport dominates the cargo sector, comprising 70% of all carried goods, domestic and international. Road transport is the one that prevails in the passenger sector, accounting for over 90% of all transported passengers. 5 major cargo ports offer easy navigational access, deep waters, and good ice conditions. There are 12 airports and 1 heliport in Estonia. Lennart Meri Tallinn Airport is the largest airport in Estonia, with 1,73 million passengers and 22,764 tons of cargo (annual cargo growth 119.7%) in 2007. International flight companies such as SAS, Finnair, Lufthansa, EasyJet, and Nordic Aviation Group provide direct flights to 27 destinations.

Approximately 7.5% of the country's workforce is employed in transportation and the sector contributes over 10% of GDP. Estonia is getting much business from traffic between European Union and Russia, especially oil cargo through Estonian ports. Transit trade's share of GDP is disputed, but many agree that Russia's increased hostility is decreasing the share.

Instead of coal, electricity is generated by burning oil shale, with largest stations in Narva. Oil shale supplies around 70% of the country's primary energy. Other energy sources are natural gas imported from Russia, wood, motor fuels, and fuel oils.

Wind power in Estonia amounts to 58.1 megawatts, whilst roughly 399 megawatts worth of projects are currently being developed. Estonian energy liberalization is lagging far behind the Nordic energy market. During the accession negotiations with the EU, Estonia agreed that at least 35% of the market are opened before 2009 and all of non-household market, which totals around 77% of consumption, before 2013. Estonia is concerned that Russia could use energy markets to bully it. In 2009, the government considered granting permits to nuclear power companies, and there were plans for a shared nuclear facility with Latvia and Lithuania. Those plans were shelved after the Fukushima Daiichi nuclear disaster in March 2011.

Estonia has high Internet penetration, and connections are available throughout most of the country.

Trade
Estonia exports machinery and equipment (33% of all exports annually), wood and paper (15% of all exports annually), textiles (14% of all exports annually), food products (8% of all exports annually), furniture (7% of all exports annually), and metals and chemical products. Estonia also exports 1.562 million megawatt hours of electricity annually. Estonia imports machinery and equipment (33.5% of all imports annually), chemical products (11.6% of all imports annually), textiles (10.3'% of all imports annually), food products (9.4% of all imports annually), and transportation equipment (8.9% of all imports annually). Estonia imports 200 thousand megawatt hours of electricity annually.

Data
The following table shows the main economic indicators in 1993–2018. Gross domestic product by country

title: Economy of Estonia


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Telecommunications in Estonia

The National Telecommunications act in the second period of Estonian independence granted a monopoly on international and local fixed line telephony to Estonian Telecom (Eesti Telecom). In the process of privatization, a concession was granted to liberalize mobile, CATV and packet-switched telecommunications. This concession was critical for developing a competitive market. Three licensed mobile operators encouraged one of the highest rates of mobile telephony penetration in the world. CATV licenses were granted at a local level, and while it was a more natural monopoly, pirate operators proliferated within populous cities in the 1990s.

Internet penetration blossomed. Beginning with a satellite link and widespread undersea leased line connectivity, Estonia connected with the rest of the world. The concession for packet communications, perhaps against the constraint of limited international telephony competition (with the global exceptions of callback, transit and re-file arbitrage) -- created conditions in which Skype was natively created.

With a population of about 1.3 million, Estonia had in 2012 about 2.07 million cellular telephones and 0.45 million fixed phones. In 2009 it had about 0.97 million internet users.

Digital Progress
Estonia is a nation with a digitally advanced economy. In 2023, about 93% of citizens engage with e-government services, highlighting a citizen-centric governance approach. Access to e-health records is available to 89% of Estonians. In the business realm, 51% of companies have adopted cloud services. Supporting this digital progress, approximately 10.1% of graduates are in Information and Communication Technology (ICT).

license: Creative Commons - Attribution Share-Alike - https://creativecommons.org/licenses/by-sa/4.0/

title: Telecommunications in Estonia


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Transport in Estonia

Transport in Estonia relies mainly on road and rail networks.

Roads

 * Total: 57,565 km (including 16,465 km of national roads)
 * Paved: 12,926 km (including 99 km of limited-access roads)

National roads
National roads form the core of Estonian road network. Their total length is 16,489 km (or 28% of all roads), 67% of them are paved. They are divided into 4 classes according to importance:
 * main roads (1,607 km)
 * basic roads (2,406 km)
 * secondary roads (12,476 km)
 * local roads (18,455 km)

Electric vehicle network
Estonia is the first country in the EU and in the world to introduce a nationwide, publicly serviced charging system for charging the batteries of electric vehicles. The 165 fast charging stations are equipped with connectors of the CHAdeMO standard. They are located throughout the entire country, including the islands, and have a maximum distance of 40–60 km in between. The charging stations can also be navigated via a smartphone app (currently only for Android). The relatively dense network and 30 minute quick charges are built to enable a country-wide electric vehicle network. The system offers a unitary booking service and several different tariffs, some of which appear attractively low priced. The charging station network puts Estonia at the forefront in Europe even though Norway actually has a higher penetration of electric vehicles. Estonia has a rate of 1 electric vehicle per 1,000 capita, whereas Norway has 4 EVs per 1,000 capita.

Railways

 * Total: 900 km common carrier lines only (1,200 km including dedicated industrial lines)
 * Broad gauge: 900 km or  gauge (133 km electrified)

Railway links with adjacent countries

 * 🇱🇻 Latvia – yes – same gauge
 * 🇷🇺 Russia – yes – same gauge

As of 2023, the Rail Baltica project to link a high speed line through Latvia and Lithuania to Poland, is scheduled for completion in 2030, with a start of services on some of the sections in 2028.

Light rail
There has been a growing tram network in Tallinn, Estonia since 1888, when traffic was started by horse-powered trams. The first line was electrified on October 28, 1925. The first electric trams were built by Dvigatel, Ltd., in Tallinn before World War II and for some years after that, the last one in 1954. In the 1920s and 1930s gas-powered trams were also used. Since 1955 to 1988 German-built trams were used. In total, there were 20 LOWA T54-B54 trams (in use from February 1955 to March 1977), 11 Gotha T57-B57 (in use from January 1958 to June 1978), 5 Gotha T59E-B59E (in use from June 1960 to February 1980), 14 Gotha T2-62 and B2-62 (in use from 1962 to 1981) and 50 Gotha G4 trams (in use from January 1965 to October 1988) trams. The first Czechoslovakian-built ČKD Tatra T4SU arrived in 1973. The T4SU trams were in use from May 1973 to September 2005 and there were 60 of them. The first KT4SU arrived in Tallinn in 1981 and was first in use on March 10, 1981. In 2007, there are 56 KT4SU, 12 KTNF6 (rebuilt KT4SUs, 10 local, one from Gera and one from Erfurt) and 23 KT4D (12 from Gera, 6 from Cottbus, 1 from Frankfurt (Oder) and 5 from Erfurt) in use. As of 2018, there are four lines: 1 (Kopli-Kadriorg), 2 (Kopli-Ülemiste), 3 (Tondi-Kadriorg) and 4 (Tondi-Lennujaam (Airport)). There have also been lines 5 (Kopli-Vana-Lõuna, shut down in 2004 because of small usage) and 6 (Kopli-Tondi, temporarily used in time of repairs).

Ports and Harbours
Estonia has 45 ports in the State Port Register. With a few exceptions, all of them are on the Baltic Sea.

Largest ports are Muuga (near Tallinn), Tallinn (comprises several ports), Paldiski, Kunda, Pärnu and Sillamäe.

Merchant marine
Since 2014, there have been no vessels over 500gt on the Estonian register. About 60 merchant vessels are beneficially owned in Estonia, with most of them registered in Malta. The government has started a drive to bring more of these vessels back into the Estonian register.

Airports – with paved runways

 * total: 13 (2013)
 * over 3,047 m: 2
 * 2,438 to 3,047 m: 8
 * 1,524 m to 2,437 m : 2
 * 914 to 1,523 m: 1

Lennart Meri Tallinn Airport is the largest airport in Estonia.

Pipelines

 * Natural gas 859 km (2007)

Waterways

 * 320 km perennially navigable

Currently operating water transport routes:
 * International:
 * Tallinn – Helsinki ferry and (seasonal) high-speed craft
 * Tallinn – Mariehamn (Åland) – Stockholm ferry
 * Paldiski – Kappelskär (Sweden) ferry
 * Tallinn – Visby (Gotland) (seasonal cruise) ferry
 * Domestic:
 * Western Estonia:
 * Rohuküla – Sviby (Vormsi Island) ferry
 * Rohuküla – Heltermaa (Hiiumaa Island) ferry
 * Sõru (Hiiumaa Island) – Triigi (Saaremaa Island) ferry
 * Virtsu – Kuivastu (Muhu Island) ferry
 * Pärnu – Kihnu Island boat-ferry
 * Munalaid – Kihnu Island boat-ferry
 * Munalaid – Manilaid Islet boat-ferry and boat
 * Roomassaare (Saaremaa Island) – Abruka Island boat-ferry and boat
 * Munalaid – Ruhnu Island (charter) ferry and (seasonal) high-speed craft-ferry
 * Pärnu – Ruhnu Island (seasonal) high-speed craft-ferry
 * Roomassaare (Saaremaa Island) – Ruhnu Island (seasonal) high-speed craft-ferry
 * Rohuküla – Hobulaid Islet (charter) boat
 * Northern Estonia:
 * Leppneeme – Prangli Island boat-ferry
 * Tallinn – Aegna Island (seasonal) boat
 * Tallinn – Naissaar Island (seasonal) boat
 * Dirhami – Osmussaar Island (seasonal) boat
 * Kurkse – Väike-Pakri Island (charter) boat
 * Lake Peipus and Emajõgi River:
 * Laaksaare – Piirissaar Island ferry
 * Kavastu (seasonal) cable ferry across Emajõgi River

title: Transport in Estonia


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Foreign relations of Estonia

The Republic of Estonia gained its independence from the Russian Empire on 24 February 1918 and established diplomatic relations with many countries via membership of the League of Nations. The forcible incorporation of Estonia into the Soviet Union in 1940 was not generally recognised by the international community and the Estonian diplomatic service continued to operate in some countries. Following the restoration of independence from the Soviet Union, Russia was one of the first nations to re-recognize Estonia's independence (the first country to do so was Iceland on 22 August 1991). Estonia's immediate priority after regaining its independence was the withdrawal of Russian (formerly Soviet) forces from Estonian territory. In August 1994, this was completed. However, relations with Moscow have remained strained primarily because Russia decided not to ratify the border treaty it had signed with Estonia in 1999.

Trends following re-independence
Since regaining independence, Estonia has pursued a foreign policy of close cooperation with Western European nations. The two most important policy objectives in this regard have been accession into NATO and the European Union, achieved in March and May 2004 respectively. Estonia's international realignment toward the West has been accompanied by a general deterioration in relations with Russia, most recently demonstrated by the controversy surrounding relocation of the Bronze Soldier WWII memorial in Tallinn. Estonia has become an increasingly strong supporter of deepening European integration. The decision to participate in the preparation of a financial transaction tax in 2012 reflects this shift in Estonia's EU policy.

An important element in Estonia's post-independence reorientation has been closer ties with the Nordic countries, especially Finland and Sweden. Indeed, Estonians consider themselves a Nordic people due to being Finnic people like the Finns rather than Balts, based on their historical ties with Denmark and particularly Finland and Sweden. In December 1999 Estonian foreign minister (and since 2006, president of Estonia) Toomas Hendrik Ilves delivered a speech entitled "Estonia as a Nordic Country" to the Swedish Institute for International Affairs. In 2003, the foreign ministry also hosted an exhibit called "Estonia: Nordic with a Twist". And in 2005, Estonia joined the European Union's Nordic Battle Group. It has also shown continued interest in becoming a full member in the Nordic Council.

Whereas in 1992 Russia accounted for 92% of Estonia's international trade, today there is extensive economic interdependence between Estonia and its Nordic neighbors: three-quarters of foreign investment in Estonia originates in the Nordic countries (principally Finland and Sweden), to which Estonia sends 42% of its exports (as compared to 6.5% going to Russia, 8.8% to Latvia, and 4.7% to Lithuania). On the other hand, the Estonian political system, its flat rate of income tax, and its non-welfare-state model distinguish it from the other Nordic states, and indeed from many other European countries.

Estonia is a party to 181 international organizations, including the BIS, CBSS, CE, EAPC, EBRD, ECE, EU (member since 1 May 2004), FAO, IAEA, IBRD, ICAO, ICRM, IFC, IFRCS, IHO, ILO, IMF, International Maritime Organization, Interpol, IOC, IOM (observer), ISO (correspondent), ITU, ITUC, NATO, OPCW, OSCE, PFP, UN, UNCTAD, UNESCO, UNMIBH, UNMIK, UNTSO, UPU, WCO, WEU (associate partner), WHO, WIPO, WMO, WTO.

Territorial issues between Estonia and Russia
After the dissolution of the Soviet Union Estonia had hoped for the return of more than 2,000 square kilometers of territory annexed to Russia after World War II in 1945. The annexed land had been within the borders Estonia approved by Russia in the 1920 Tartu Peace Treaty. However, the Boris Yeltsin government disavowed any responsibility for acts committed by the Soviet Union.

After signing the border treaty by the corresponding foreign minister in 2005, it was ratified by the Estonian government and president. The Russian side interpreted the preamble as giving Estonia a possibility for future territorial claim, and Vladimir Putin notified Estonia that Russia will not consider these. Negotiations were reopened in 2012 and the Treaty was signed in February 2014. Ratification is still pending.

Diplomatic relations
List of countries which Estonia maintains diplomatic relations with:

title: Foreign relations of Estonia


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Talk:Estonia

Religion
The avoidance of any mention of Soviet suppression of religion is so startling as to raise the suspicion of propaganda. 伟思礼 (talk) 04:22, 15 December 2023 (UTC)

 * @伟思礼 Conversely, it may be due to the absence of reliable sources. —C.Fred (talk) 04:24, 15 December 2023 (UTC)
 * Lithuania was also under soviet domination but stay majorly christian... Respublica1810 (talk) 12:46, 1 April 2024 (UTC)

"Palojärv" listed at Redirects for discussion
The redirect [//en.wikipedia.org/w/index.php?title=Paloj%C3%A4rv&redirect=no Palojärv] has been listed at redirects for discussion to determine whether its use and function meets the redirect guidelines. Readers of this page are welcome to comment on this redirect at  until a consensus is reached. Shhhnotsoloud (talk) 17:09, 22 March 2024 (UTC)

Change tab "Independence from Russia and Germany" to Formation
Following the example of the article about Lithuania, change the tab "Independence from Russia and Germany" to "Formation" and by adding the first mention of Estonia as Aestii with the addition of a link to the tab 'Early Middle Ages' in the article 'History of Estonia. Pronto20 (talk) 23:04, 24 March 2024 (UTC)

"Palojärv (disambiguation)" listed at Redirects for discussion
The redirect [//en.wikipedia.org/w/index.php?title=Paloj%C3%A4rv_(disambiguation)&redirect=no Palojärv (disambiguation)] has been listed at redirects for discussion to determine whether its use and function meets the redirect guidelines. Readers of this page are welcome to comment on this redirect at  until a consensus is reached. signed,Rosguill talk 20:18, 5 April 2024 (UTC)

RfC - Another "Northern" or "Eastern" issue
An IP user added a description like 'geographiclly located in Northern Europe' in the lede. (1, 2, 3, 4) I think it violates "Lithuania solution", the consensus which is made in the previous talk. I request other users' opinions for this issue. Do you support or oppose to add this description? 117.53.77.84 (talk) 15:13, 15 April 2024 (UTC)

 * @117.53.77.84 Comment Don't see a problem with replacing 'geographically located in Northern Europe' with 'geographically located in Northern and Eastern Europe' --Louis P. Boog (talk) 19:37, 15 April 2024 (UTC)
 * I haven't participated in the above RfC, but it is not immediately obvious to me that the "Lithuania solution" is the clear consensus.
 * In any case, I don't have a problem with Estonia's geographic location being described as "Northern Europe" or "Northern and Eastern Europe" (although "Central Europe" is a bit much). Both options seem a bit more informative to a global audience than simply "Baltic region". Although we could also follow the Latvia article and write it as "a country in the Baltic region of Northern Europe". In fact, that seems like the best option, for the lede at least. Indrek (talk) 05:19, 16 April 2024 (UTC)
 * Support - In the RfC you linked, there actually seemed to be a strong consensus for designating Estonia as located in Northern Europe specifically. I would also be wary of designating it as in Eastern Europe though, as that may prove way more controversial and debatable (as shown a bit in the RfC actually). I think the phrasing suggested by @Indrek at the end of their reply would be good for the lead. Choucas Bleu  (T·C) 21:27, 2 May 2024 (UTC)

Comment, the present text seems well phrased, except the "geographically" is - at best - redundant. "Located" ordinarily means "physically (ie geographically) placed" so the word is acting as a PoV comment on other ways to classify. If Estonia is classified as belonging in various 'broad sweep' world regions, then the who and why of those classifications seems useful. I cannot comment on the present accuracy, since no sources are provided.Pincrete (talk) 14:00, 18 April 2024 (UTC)

 * Agree with Pincrete on the phrasing. We should state that different sources classify the region differently. By the way the OECD term Central or Eastern European has a different meaning than the current phrasing "Central or Eastern European". I don't think anyone says Estonia is central european. HansVonStuttgart (talk) 08:49, 21 April 2024 (UTC)

I agree with Indrek that it is a bit more, if not much more informative to a global audience to state a geographic location other than simply "Baltic region". I'm not against stating in the lede that all three options (Northern, Central and Eastern) have been used (like the previous wording that the lede had) because that would make them all equal but honestly following the Latvias article and writing it as "a country in the Baltic region of Northern Europe" is the very best option for the lede. The other options used could be in the tiny clickable note thingy since in terms of geography Estonia is obviously in Northern Europe but as I said I'm not against if all three are in a sentence in the lede.
 * Indrek's solution is the best. In my opinion it is clearer. Jtrrs0 (talk) 16:43, 7 May 2024 (UTC)

 * I agree. 85.254.74.59 (talk) 16:08, 10 May 2024 (UTC)

 * Comment - current version at the time of writing this comment, "is a country by the Baltic Sea in Northern Europe", looks best fitting for me.--Staberinde (talk) 09:41, 15 May 2024 (UTC)

Cultural Autonomies Act
Could we get a summary over copy pasting copyrighted text. This summary article is not the place to highlight one act. WP:COUNTRYSECTIONS Moxy 🍁 12:27, 17 June 2024 (UTC)

The Estonian Cultural Autonomy Act grants the freedom to establish cultural autonomy bodies in order to perform culture-related rights granted to them by the Constitution.

The act permits the establishment of cultural autonomy bodies for the following national minorities without any pre-conditions:

 * German national minority
 * Swedish national minority
 * Jewish national minority
 * Russian national minority

Additionally, any national minority with a population of over 3000 persons is granted the same right.

Persons belonging to a national minority have the right to:

 * form and support national cultural and educational institutions and religious communities;
 * establish national organisations;
 * perform national traditions and religious customs if this does not violate public order, damage health or breach morality;
 * use their mother tongue in public administration within the limits established by the Language Act;
 * publish printed matter in their national languages;
 * conclude cooperation agreements between cultural and educational institutions and religious communities;
 * disseminate and exchange information in their mother tongue.

Currently active cultural autonomies: Based on the cultural autonomy act, the currently active cultural councils in Estonia, as of 2023, were for the Ingrian Finnish and for the Estonian Swedish cultural minorities. Moxy 🍁 12:27, 17 June 2024 (UTC)
 * I don't have an issue with summarizing it. In this case you have reverted twice without mentioning that the issue is, in your view, copy-pasting. The first time you claimed it's a "random fact" (it isn't). Second time there was no reasoning given at all. The last part of the text is not a copy-paste, but summarization. I will add this back + sentence about the cultural autonomy act.Saltsjöbaden (talk) 17:08, 17 June 2024 (UTC)
 * I'm thinking we need to start a separate article for this if we have sources stating that it's notable. But this overview article isn't the place to detail one act. What we would bd looking for is the effects in a summary..... Just detailing the ACT leaves us with no r information about actual society...... What are the actual effects of this law are they implemented are they controversial are they actualized equally throughout society? Moxy 🍁 17:14, 17 June 2024 (UTC)
 * A separate article can also be started. But briefly mentioning the act and the current official cultural minorities / cultural councils of Estonia, under the Culture paragraph, is a no-brainer. Especially considering that specifically the estonian swedish cultural minority is mentioned multiple times in the article in other places. Saltsjöbaden (talk) 17:22, 17 June 2024 (UTC)
 * I'm not sure what you're trying to say with this section..... are you trying to say only certain minorities have the right to practice religion and cultural expression? Moxy 🍁 17:28, 17 June 2024 (UTC)
 * I'm specifically referencing the estonian cultural autonomies act, which is a notable law in Estonia, giving every national minority that numbers over 3000, a right to form their own official national cultural bodies. Including a source from the estonian ministry of culture. It's about the furthest from racism you can get, not that it's even relevant to this discussion. You have now reverted this 3 times, in effect breaking the 3-revert rule. Saltsjöbaden (talk) 17:32, 17 June 2024 (UTC)
 * Will read up on this..... I find it shocking any country will not allow some random amount of practitioners to not practice their cultures..... Or is it just you have to have so many to form a social club? Do we have links to like modern amendments? Moxy 🍁 17:36, 17 June 2024 (UTC)
 * Ok... did some reading....could saying something like... Hower there is some criticism that we may want to about to Moxy 🍁 17:49, 17 June 2024 (UTC)

You can feel free to add whatever well-cited text there is about it. But you also broke the 3revert rule by reverting something that said the exact same thing, and with direct sources from the estonian constitution and the ministry of culture. What exactly was wrong with the text that you removed? At the very least, the currently registered national minorities should be mentioned, plus the four minority groups that are included in the law by default:

Saltsjöbaden (talk) 18:00, 17 June 2024 (UTC)

 * Looking for academic publications..... linking to the act itself not helpful for readers. And trying to move forward..... Is there only these three or four groups? Moxy 🍁 18:02, 17 June 2024 (UTC)
 * In answer to your question about the different groups, here is the paragraph from the text above, which answers that question: "The act allows the German, Swedish, Russian and Jewish national minorities to form cultural autonomy bodies without a required minimum number of people belonging to the corresponding minority, and for any other national minority that numbers at least 3000 people. As of 2023, based on the cultural autonomy act, the active cultural councils in Estonia were for the Estonian Finnish (including Ingrian Finns) and for the Estonian Swedish cultural minorities". The sources for Estonian Finnish and Estonian Swedish national minorities being the currently official ones are linked to above, with the first one being from the ministry of culture. Original text in estonian, from the ministry of culture: Eestis on kultuurautonoomia soomlastel (alates 2004. a) ja rootslastel (2007. a). Saltsjöbaden (talk) 18:19, 17 June 2024 (UTC)
 * So reviewing another academic release I see things like "Despite the fact that Estonia's Russian and Swedish minorities were larger than the minimum required, only Germans (1925) and Jews.." and "the policy has failed to be implemented". Going to compile some more sources... as this is not clear cut as it sounds... a little bit controversial..... Perhaps exclusionary in nature despite its intent or simply not utilized to its full extent by minority populations. Moxy 🍁 18:28, 17 June 2024 (UTC)
 * Obviously, well-sourced criticism / mentioning of issues can / should also be mentioned. But the act receiving criticism or not is not relevant to the question of including it as a topic or not. As it's clearly relevant and notable, not to mention it being mentioned in the article multiple times elsewhere, in the context of the estonian swedish cultural autonomy. Saltsjöbaden (talk) 18:40, 17 June 2024 (UTC)
 * It's relevant to how it should be included WP:DUE. Being touted as one of the greatest cultural accomplishments may not be representative of the sources.
 * Moxy 🍁 19:01, 17 June 2024 (UTC)
 * 1) The link you provided above has nothing to do with the cultural autonomies act. It has 0 mention of it. Not sure why you added this here? If you want to connect that to the topic on your own because you think it's related, then that is WP:OR. 2) None of the texts here is touting it as "one of the greatest cultural accomplishments." 3) WP:DUE would absolutely justify the inclusion of a summary of the cultural autonomies act / the currently registered cultural autonomies in the article. Stick to the topic at hand please, if you want to participate. Saltsjöbaden (talk) 19:05, 17 June 2024 (UTC)
 * 1) Seems extremely relevant if it's surpasses the old act... or makes parts of it null and void.
 * 2)... I said it many times... this is not the article to detail one act of many... especially if it's not in the proper manner.
 * I am going to keep reviewing this for sources... if you want you're more than welcome to ask for other opinions. Moxy 🍁 19:16, 17 June 2024 (UTC)
 * I am going to keep reviewing this for sources... if you want you're more than welcome to ask for other opinions. Moxy 🍁 19:16, 17 June 2024 (UTC)

 * 1) It does not. These are completely unrelated topics. The article you linked says nowhere that it makes the act void. Furthermore, it does not mention the act at all. Because this is a completely unrelated topic. You're doing WP:OR at this point. These are non-related topics. Starting from the fact that there currently is no registered russian cultural autonomy in estonia. There is nothing to "void". You should re-read the actually relevant sources above that you yourself linked to. You would then know that there is no russian cultural autonomy registered in Estonia. 2) The topic itself is clearly relevant and - again - it is already mentioned on Estonia multiple times, in the context of the estonian swedish cultural autonomy. A short summary is completely justified. Saltsjöbaden (talk) 19:19, 17 June 2024 (UTC)

why no mention of population loss due to free market ?
Since Estonia joined the free market system, its population has been reduced around 15%. 79.167.132.76 (talk) 16:11, 29 June 2024 (UTC)

 * Probably because nobody has proposed it yet and provided a reliable source for it.  signed, Willondon (talk)  16:38, 29 June 2024 (UTC)

title: Talk:Estonia


text:
Demographics of Ethiopia

The demographics of Ethiopia encompass the demographic features of inhabitants in Ethiopia, including ethnicity, languages, population density, education level, health, economic status, religious affiliations and other aspects of the population.

Ethnic groups
Ethiopia's population is highly diverse, containing over 80 different ethnic groups, the four largest of which are the Oromo, Amhara, Somali and Tigrayans. According to the Ethiopian national census of 2007, the Oromo are the largest ethnic group in Ethiopia, at 34.4% of the nation's population. The Amhara represent 27.0% of the country's inhabitants, while Somalis and Tigrayans represent 6.2% and 6.1% of the population respectively. Other prominent ethnic groups are as follows: Sidama 4.0%, Gurage 2.5%, Welayta 2.3%, Afar 1.7%, Hadiya 1.7%, Gamo 1.5% and Others 12.6%.

Afroasiatic-speaking communities make up the majority of the population. Among these, Semitic speakers often collectively refer to themselves as the Habesha people. The Arabic form of this term (al-Ḥabasha) is the etymological basis of "Abyssinia", the former name of Ethiopia in English and other European languages. Additionally, Nilo-Saharan-speaking ethnic minorities inhabit the southern regions of the country, particularly in areas of the Gambela Region which borders South Sudan. The largest ethnic groups among these include the Nuer and Anuak. The Southern Nations, Nationalities, and Peoples' Region, being an amalgam of the main homelands of numerous ethnicities, contains over 56 indigenous ethnic groups.

Languages
According to the bibliographic database Glottolog, there are 109 languages spoken in Ethiopia; meanwhile, Ethnologue lists 90 individual languages spoken in the country. Most people in the country speak Afroasiatic languages of the Cushitic or Semitic branches, including the Oromo language, Somali, Amharic, and Tigrinya. Together, these four groups make up about three-quarters of Ethiopia's population. Other Afroasiatic languages with a significant number of speakers include the Cushitic Sidamo, Afar, Hadiyya and Agaw languages, as well as the Semitic Gurage languages, Harari, Silt'e, and Argobba languages. Arabic, which also belongs to the Afroasiatic family, is likewise spoken in some areas.

The principal Semitic language of the north-west and centre of the country is Amharic, which is the language of the Amhara Region. Moreover, Amharic is also one of the official working languages of Ethiopia.

Oromo serves as one of the official working languages of Ethiopia and is also the working language of several of the states within the Ethiopian federal system including Oromia, Harar and Dire Dawa regional states and of the Oromia Zone in the Amhara Region.

Religion
Various religions are adhered to in Ethiopia. Most Christians live in the highlands, whereas Muslims mainly inhabit the lowlands. Adherents of traditional faiths are primarily concentrated in the southern regions.

According to the Ethiopian Central Statistical Agency (2007 census), the national religious composition is Ethiopian Orthodox 43.5%, Protestantism 18.6%, Roman Catholicism 0.7%, Islam 33.9%, traditional 2.6%, and others 0.6%.

Population
Source: Central Statistical Agency (CSA)

Ethiopia is the most populous landlocked country in the world. Its total population has grown from 38.1 million in 1983 to 109.5 million in 2018. The population was only about nine million in the 19th century. The 2007 Population and Housing Census results show that the population of Ethiopia grew at an average annual rate of 2.6% between 1994 and 2007, down from 2.8% during the period 1983–1994. As of 2015, the population growth rate is among the top ten countries in the world. According to UN estimations, life expectancy in Ethiopia had improved over time, with male life expectancy reported to be 56 years and for women 60 years.

UN estimates
According to, the total population was in , compared to 18,434,000 in 1950. The proportion of children below the age of 15 in 2010 was 41.5%, 55.8% was between 15 and 65 years of age, while 3.3% was 65 years or older. The average age was 25.1.

UN projections
Below are the UN's medium variant projections:

Vital statistics
Registration of vital events in Ethiopia is incomplete. The Population Department of the United Nations prepared the following estimates: CBR = crude birth rate (per 1,000); CDR = crude death rate (per 1,000); NC = natural change (per 1,000); IMR = infant mortality rate per 1,000 births; TFR = total fertility rate (number of children per woman); IMR = infant mortality rate per 1,000 births

Source: UN World Population Prospects

Total fertility rate in Ethiopia (census 2007)
As per 2007 Population and Housing Census of Ethiopia

Fertility and Births (Demographic and Health Surveys)
Crude Birth Rate (CBR), Total Fertility Rate (TFR) and Wanted Fertility Rate (WFR):

Fertility data as of 2016 (DHS Program):

Other demographic statistics
Demographic statistics according to the World Population Review in 2019.

 * One birth every 9 seconds
 * One death every 43 seconds
 * One net migrant every 144 minutes
 * Net gain of one person every 11 seconds

The following demographic statistics are from the CIA World Factbook.

Population

 * 116,462,712 (2023 est.) Country comparison to the world: 12th
 * (estimate for )

Ethnic groups

 * Oromo 35.8%
 * Amhara 24.1%
 * Somali 7.2%
 * Tigray 5.7%
 * Sidama 4.1%
 * Guragie 2.6%
 * Welaita 2.3%
 * Afar 2.2%
 * Silte 1.3%
 * Kefficho 1.2%
 * other 13.5% (2022 est.)

Religions
Ethiopian Orthodox 43.8%, Muslim 31.3%, Protestant 22.8%, Catholic 0.7%, traditional 0.6%, other 0.8% (2016 est.)

Age structure

 * 0-14 years: 38.91% (male 22,821,026/female 22,498,331)
 * 15-64 years: 57.55% (male 33,345,764/female 33,672,933)
 * 65 years and over: 3.54% (male 1,887,831/female 2,236,827) (2023 est.)

 * 0–14 years: 39.81% (male 21,657,152/female 21,381,628)
 * 15–24 years: 19.47% (male 10,506,144/female 10,542,128)
 * 25–54 years: 32.92% (male 17,720,540/female 17,867,298)
 * 55–64 years: 4.42% (male 2,350,606/female 2,433,319)
 * 65 years and over: 3.38% (male 1,676,478/female 1,977,857) (2020 est.)

 * 0–14 years: 43.21% (male 23,494,593 /female 23,336,508)
 * 15–24 years: 20.18% (male 10,857,968 /female 11,011,100)
 * 25–54 years: 29.73% (male 15,978,384 /female 16,247,086)
 * 55–64 years: 3.92% (male 2,059,129 /female 2,185,814)
 * 65 years and over: 2.97% (male 1,445,547 /female 1,770,262) (2018 est.)

 * 0–14 years: 43.94% (male 21,900,571/female 21,809,643)
 * 15–24 years: 19.98% (male 9,865,976/female 10,009,596)
 * 25–54 years: 29.31% (male 14,487,280/female 14,667,179)
 * 55–64 years: 3.88% (male 1,882,315/female 1,981,762)
 * 65 years and over: 2.88% (male 1,289,336/female 1,572,161) (2015 est.)

Population growth rate

 * 2.42% (2023 est.) Country comparison to the world: 25th
 * 2.46% (2022 est.) Country comparison to the world: 25th
 * 2.83% (2018 est.) Country comparison to the world: 11th
 * 2.89% (2015 est.)

Birth rate

 * 29.97 births/1,000 population (2023 est.) Country comparison to the world: 29th
 * 30.49 births/1,000 population (2022 est.) Country comparison to the world: 29th
 * 36 births/1,000 population (2018 est.) Country comparison to the world: 17th
 * 37.27 births/1,000 population (2015 est.)

Death rate

 * 5.6 deaths/1,000 population (2022 est.) Country comparison to the world: 176rd
 * 5.7 deaths/1,000 population (2022 est.) Country comparison to the world: 173rd
 * 7.5 deaths/1,000 population (2018 est.) Country comparison to the world: 110th
 * 8.19 deaths/1,000 population (2015 est.)

Total fertility rate

 * 3.92 children born/woman (2023 est.) Country comparison to the world: 27th
 * 3.99 children born/woman (2022 est.) Country comparison to the world: 28th
 * 4.91 children born/woman (2018 est.) Country comparison to the world: 15th
 * 5.15 children born/woman (2015 est.)

Median age

 * total: 19.8 years. Country comparison to the world: 197th
 * male: 19.6 years
 * female: 20.1 years (2020 est.)

 * total: 18 years. Country comparison to the world: 213rd
 * male: 17.8 years
 * female: 18.2 years (2018 est.)

 * total: 17.7 years
 * male: 17.5 years
 * female: 17.8 years (2015 est.)

Net migration rate

 * -0.19 migrant(s)/1,000 population (2023 est.) Country comparison to the world: 109th
 * -0.2 migrant(s)/1,000 population (2017 est.) Country comparison to the world: 107th

Mother's mean age at first birth

 * 19.3 years (2019 est.)
 * note: median age at first birth among women 20–49

 * 20 years (2016 est.)
 * note: median age at first birth among women 25–29

Contraceptive prevalence rate

 * 37.7% (2020)
 * 36.5% (2017)

Urbanization

 * urban population: 23.2% of total population (2023)
 * rate of urbanization: 4.4% annual rate of change (2020–25 est.)

 * urban population: 20.8% of total population (2018)
 * rate of urbanization: 4.63% annual rate of change (2015–20 est.)

 * urban population: 19.5% of total population (2015)
 * rate of urbanization: 4.89% annual rate of change (2010–15 est.)

Dependency ratios

 * total dependency ratio: 75.7 (2021 est.)
 * youth dependency ratio: 70.2 (2021 est.)
 * elderly dependency ratio: 5.5 (2021 est.)
 * potential support ratio: 18.1 (2021 est.)

Sex ratio

 * at birth: 1.03 male(s)/female
 * 0-14 years: 1.01 male(s)/female
 * 15-64 years: 0.99 male(s)/female
 * 65 years and over: 0.84 male(s)/female
 * total population: 0.99 male(s)/female (2023 est.)

Life expectancy at birth

 * total population: 68.59 years. Country comparison to the world: 183rd
 * male: 66.43 years
 * female: 70.81 years (2023 est.)

 * total population: 63 years
 * male: 60.5 years
 * female: 65.5 years (2018 est.)

 * total population: 61.48 years
 * male: 59.11 years
 * female: 63.93 years (2015 est.)

HIV/AIDS

 * adult prevalence rate: 1.15%
 * people living with HIV/AIDS: 730,300
 * deaths: 23,400 (2014 est.)

Literacy

 * definition: age 15 and over can read and write

 * total population: 51.8%
 * male: 57.2%
 * female: 44.4% (2017)

 * total population: 49.1%
 * male: 57.2%
 * female: 41.1% (2015 est.)

School life expectancy (primary to tertiary education)

 * total: 8 years (2012)
 * male: 9 years (2012)
 * female: 8 years (2012)

Major infectious diseases

 * degree of risk: very high (2023)
 * food or waterborne diseases: bacterial and protozoal diarrhea, hepatitis A, and typhoid fever
 * vectorborne diseases: malaria and dengue fever
 * water contact diseases: schistosomiasis
 * animal contact diseases: rabies
 * respiratory diseases: meningococcal meningitis

note: on 21 March 2022, the US Centers for Disease Control and Prevention (CDC) issued a Travel Alert for polio in Africa; Ethiopia is currently considered a high risk to travelers for circulating vaccine-derived polioviruses (cVDPV); vaccine-derived poliovirus (VDPV) is a strain of the weakened poliovirus that was initially included in oral polio vaccine (OPV) and that has changed over time and behaves more like the wild or naturally occurring virus; this means it can be spread more easily to people who are unvaccinated against polio and who come in contact with the stool or respiratory secretions, such as from a sneeze, of an “infected” person who received oral polio vaccine; the CDC recommends that before any international travel, anyone unvaccinated, incompletely vaccinated, or with an unknown polio vaccination status should complete the routine polio vaccine series; before travel to any high-risk destination, CDC recommends that adults who previously completed the full, routine polio vaccine series receive a single, lifetime booster dose of polio vaccine

Unemployment, youth ages 15–24

 * total: 5,7 % (2021 est.)
 * male: 4.4 % (2021 est.)
 * female: 7.2 % (2021 est.)

title: Demographics of Ethiopia


text:
Politics of Ethiopia

The politics of Ethiopia are the activities associated with the governance of Ethiopia. The government is structured as a federal parliamentary republic with both a President and Prime Minister. The legislature is multicameral, with a house of representatives and a council. The term politics of Ethiopia mainly relates to the political activities in Ethiopia after the late 20th century when democratization took place in the nation. The current political structure of Ethiopia was formed after the Tigrayan People's Liberation Front (TPLF) overthrew dictator President Mengistu Haile Mariam in 1991. A general election was held in June 1994 and Ethiopia has maintained a multiparty political environment until today.

Government of Ethiopia
The government of Ethiopia is structured in the form of a federal parliamentary republic, whereby the Prime Minister is the head of government. Executive power is exercised by the government while legislative power is vested in the Parliament. The Judiciary is more or less independent of the executive and the legislature. There are 12 ethnically based administrative regions and two self-governing administrations; the capital city Addis Ababa and Dire Dawa.

The president of Ethiopia is elected by the House of Peoples' Representatives for a six-year term. The prime minister is chosen by the parliament. The prime minister is designated by the party in power following legislative elections. The Council of Ministers, according to the 1995 constitution, is comprised by the Prime Minister, the Deputy Prime Ministers, various Ministers and other members as determined and approved by the House of Peoples' Representatives. At the current time, this includes the 20 members of Council of Ministers.

The Federal Parliamentary Assembly has two chambers: the Council of People's Representatives (Yehizbtewekayoch Mekir Bet) with 547 members, elected for five-year terms in single-seat constituencies; and the Council of the Federation (Yefedereshn Mekir Bet) with 110 members, one for each nationality, and one additional representative for each one million of its population, designated by the regional councils, which may elect them themselves or through popular elections.

The president and vice president of the Federal Supreme Court are recommended by the prime minister and appointed by the House of People's Representatives; for other federal judges, the prime minister submits candidates selected by the Federal Judicial Administrative Council to the People's Representatives for appointment.

Recent history
In May 1991, a coalition of rebel forces under the name Tigrayan People's Liberation Front (TPLF) overthrew the dictatorship of President Mengistu Haile Mariam. In July 1991, the TPLF, the Oromo Liberation Front (OLF), the Ogaden National Liberation Front, Western Somali Liberation Front, Oromo People's Democratic Organization (OPDO), Amhara National Democratic Movement (ANDM) and others established the Transitional Government of Ethiopia (TGE), which consisted of an 87-member Council of Representatives guided by a national charter that functioned as a transitional constitution. Since 1991, Ethiopia has established warm relations with the United States and western Europe and has sought substantial economic aid from Western countries and the World Bank.

In June 1992, the OLF withdrew from the government; in March 1993, members of the Southern Ethiopia Peoples' Democratic Coalition left the government. The Eritrean People's Liberation Front (EPLF), an ally in the fight against the Mengistu regime, assumed control of Eritrea and established a provisional government. Eritrea achieved full independence on May 24, 1993.

President Meles Zenawi and members of the TGE pledged to oversee the formation of a multi-party democracy. The first election for Ethiopia's 547-member constituent assembly was held in June 1994. This assembly adopted the constitution of the Federal Democratic Republic of Ethiopia in December 1994. The elections for Ethiopia's first popularly chosen national parliament and regional legislatures were held in May and June 1995. Most opposition parties chose to boycott these elections. There was a landslide victory for the Ethiopian People's Revolutionary Democratic Front (EPRDF). International and non-governmental observers concluded that opposition parties would have been able to participate had they chosen to do so.

The Government of the Federal Democratic Republic of Ethiopia was installed in August 1995. The first President was Negasso Gidada. The EPRDF-led government of Prime Minister Meles promoted a policy of ethnic federalism, seemingly devolving significant powers to regional, ethnically based authorities. Ethiopia today has nine semi-autonomous Regions of Ethiopia that have the power to raise and spend their own revenues.

In 2004, the government began a resettlement initiative to move more than two million people away from the arid highlands of the east, proposing that these resettlements would reduce food shortages.

The ruling party, EPRDF was declared a winner by the election board in 2000, and then again in 2005 amidst protests and riots that led to the death of many Ethiopians. Hundreds of political leaders–some of whom were elected to parliamentary positions– were arrested in connection with these protests. The incumbent president in 2013 was Mulatu Teshome who resigned in 2018.

Human rights organisations have raised concerns over the well-being of some of these prisoners. However 8,000 prisoners have already been freed.

On 5 August 2016, protests broke out across the country and dozens of protesters were shot and killed by police over the following days. The protesters demanded an end to human rights abuses, the act of land grabbing by the ruling party members and relatives of the higher officials, the master plan intended to expand Addis Ababa onto surrounding zones of the Oromia region including the farm land of oromo people (special zones of oromia around Addis Ababa), the release of political prisoners, a fairer redistribution of the wealth generated by over a decade of economic growth, and a return of Wolqayt District to the Amhara Region. The events were the most violent crackdown against protesters in Sub-Saharan Africa since the Ethiopian regime killed at least 75 people during protests in the Oromia Region in November and December 2015.

In the wake of significant unrest, the TPLF lost control of the EPDRF, with Prime Minister Hailemariam Desalegn, announcing his resignation as head of the EPDRF in 2018. Abiy Ahmed, who had become Prime Minister after winning the EPDRF leadership elections in April 2018 subsequently dissolved the EPDRF. He replaced it with the Prosperity Party, a coalition which includes all former members of the EPDRF but notably excluded the TPLF. This kickstarted a period of growing tension between the government and the TPLF, which culminated in the Tigray War that began in 2020.

Political parties and elections
In the 2015 general election, Opposition parties lost the only seat which they still held in the House of Peoples' Representatives. The Ethiopian People's Revolutionary Democratic Front and its allies won all 547 seats.

Political pressure groups include the Council of Alternative Forces for Peace and Democracy in Ethiopia (CAFPDE) Beyene Petros and the Southern Ethiopia People's Democratic Coalition (SEPDC) [Beyene Petros].

The coalition of opposition parties and some individuals that was established in 2009 to oust at the general election in 2010 the regime of the TPLF, Meles Zenawi's party that has been in power since 1991, published a 65-page manifesto in Addis Ababa on October 10, 2009.

Some of the eight-member parties of this Ethiopian Forum for Democratic Dialogue (FDD or Medrek in Amharic) include the Oromo Federalist Congress (organized by the Oromo Federalist Democratic Movement and the Oromo People's Congress), the Arena Tigray (organized by former members of the ruling party TPLF), the Unity for Democracy and Justice (UDJ, whose leader was imprisoned), and the Coalition of Somali Democratic Forces.

2005 Ethiopian general elections
Ethiopia held its third general election in May 2005, which drew a record number of voters, with 90% of the electorate turning out to cast their vote. While the election was deemed by the European Union election observer team to fall short of international standards for fair and free elections, other teams drew different conclusions. The African Union report on September 14 commended "the Ethiopian people's display of genuine commitment to democratic ideals"; on September 15, the US Carter Center concluded that "the majority of the constituency results based on the May 15 polling and tabulation are credible and reflect competitive conditions". The US Department of State said on September 16, "these elections stand out as a milestone in creating a new, more competitive multi-party political system in one of Africa's largest and most important countries." Even the EU preliminary statement of 2005 also said "...the polling processes were generally positive. The overall assessment of the process has been rated as good in 64% of the cases, and very good in 24%".

The opposition complained that the ruling EPRDF engaged in widespread vote rigging and intimidation, alleging fraud in 299 constituencies. The ruling party complained that the main opposition party CUD's AEUP sub party had engaged in intimidation. All allegations were investigated by the National Electoral Board of Ethiopia in cooperation with election monitors, a process which delayed the release of the final results. In June 2005, with the results of the election still unclear, a group of university students protested these alleged discrepancies, encouraged by supporters of the Coalition for Unity opposition party, despite a ban on protests imposed by the government. On June 8, 26 people were killed in Addis Ababa as a result of rioting, which led to the arrest of hundreds of protesters. On September 5, 2005, the National Elections Board of Ethiopia released the final election results, which confirmed that the ruling Ethiopian People's Revolutionary Democratic Front retained its control of the government, but showed that opposition parties had increased their share of parliamentary seats, from 12 to 176. The Coalition for Unity and Democracy won all the seats in Addis Ababa, both for the Parliament and the City Council.

In February 2006, UK Prime Minister Blair, acknowledging that the EPRDF has won the election, said he wanted to see Ethiopia resolve its internal problems and continue on a democratic path.

With Ethiopia's national election in May 2010 approaching, some opposition groups begun to hint a boycott, accusing the government of stepping up harassment against them. Despite growing claims of "harassment" and "undemocratic actions" perpetrated by the ruling party, the Forum for Democratic Dialogue (FDD), Ethiopia's biggest alliance of opposition political parties declared in October 2009 that it will contest in the scheduled election.

Gebru Asrat, a former ally of PM Meles Zenawi, said that his party's primary efforts were "to engage in negotiation with the government on key election issues" ahead of the election, but he added that the government was reluctant.

FDD insists to engage in a pre-election negotiation on 10 key subjects, among which the issues of access to the media for campaigning, the supremacy of law, the free access of international observers, the establishment of an independent electoral board and a stop to harassment and pressure on opposition members.

2010 Ethiopian general elections
The EPRDF won the 2010 elections by a landslide, taking 499 seats, while allied parties took a further 35. Oppositions parties took just two. Both opposition groups say their observers were blocked from entering polling stations during the election on Sunday, May 23, and in some cases the individuals were beaten. The United States and the European Union have both criticized the election as falling short of international standards. Additionally, the EPRDF won all but one of 1,904 council seats in regional elections.

International organization participation
ACP, AfDB, ECA, FAO, G-24, G-77, IAEA, IBRD, ICAO, ICRM, IDA, IFAD, IFC, IFRCS, IGAD, ILO, IMF, IMO, Intelsat, Interpol, IOC, IOM (observer), ISO, ITU, NAM, OAU, OPCW, United Nations, UNCTAD, UNESCO, UNHCR, UNIDO, UNU, UPU, WCO, WFTU, WHO, WIPO, WMO, WToO.

Scheye wrote in 2010 that significant donor resources are being invested in security sector reform in Ethiopia because of donor national interest, even though the country's ruling group is ideologically opposed to the core principles of SSR, and showed, at that time, little interest in justice and security sector development.

The Guardian wrote just before the 2015 elections that "..the EPRDF's relations with donors are a crucial factor in maintaining its position. Ethiopia remains structurally dependent on aid, with the country receiving more than $3 billion a year from the Organisation for Economic Co-operation and Development. However, all indications are that external support will remain strong, regardless of electoral openness. Ethiopia is a key partner for countries concerned about security in the region, especially the US, UK and the European Union."

Royalists and government in exile
A group of Ethiopian royalists continue to operate The Crown Council of Ethiopia as a government in exile.

title: Politics of Ethiopia


text:
Economy of Ethiopia

The economy of Ethiopia is a mixed and transition economy with a large public sector. The government of Ethiopia is in the process of privatizing many of the state-owned businesses and moving toward a market economy. The banking, telecommunication and transportation sectors of the economy are dominated by government-owned companies.

Ethiopia has one of the fastest-growing economies in the world and is Africa's second most populous country. Many properties owned by the government during the previous regime have now been privatized or are in the process of privatization and the liberalization of its financial sector in the near future. However, certain sectors such as telecommunications, financial and insurance services, air and land transportation services, and retail, are considered as strategic sectors and are expected to remain under state control for the foreseeable future. Almost 50% of Ethiopia's population is under the age of 18. Even though education enrolment at primary and tertiary level has increased significantly, job creation has not caught up with the increased output from educational institutes. The country must create hundreds of thousands of jobs every year just to keep up with population growth.

In 2023 Ethiopia has reached an estimated GDP scale of 156.1 billion dollars nominal, for PPP the country's economy has reached an estimated 393.85 billion dollars. This mostly comes from a services-based economy with agriculture. In the latest data from 2019 Ethiopia's top trading partners globally included, China, the United States, UAE, France, the United Kingdom, South Korea, Saudi Arabia, Germany, Japan, Switzerland, the Netherlands, Belgium, Turkey, India, and Egypt. In 2021, agriculture made up 37.5% of the country's economic output, while services 36.25% and industry made up 21.85% of the economy. Ethiopia's economy is ranked 159th place out of 190 countries counted, in 'Ease of doing business'. Ethiopia is also a part of African Continental Free Trade Area, Common Market for Eastern and Southern Africa, Intergovernmental Authority on Development, the G24, and the World Trade organization as an observer, and is soon to join the BRICS economic alliance, with China, India, Russia, Brazil, South Africa and the new coming members: in January 2024.

While Ethiopia does not currently have a stock exchange, it did have one in the past during the reign of Emperor Haile Selassie I, called an 'ākisīyoni gebeya.' It now has a commodity exchange in Addis Ababa called the Ethiopia Commodity Exchange, which was recently established in 2008.

The Ethiopian economy has a large foreign debt, with an overall external debt of 28 billion dollars. China owns over 13 billion dollars of its debt. Its debt to GDP ratio is smaller compared to similar and neighboring countries. Ethiopia currently has 2.4 billion dollars of foreign reserves, representing a decline compared to previous years.

Ethiopia expects itself to reach a middle-income status nation within a couple years, primarily expected to be in 2025.

History
Ethiopia's resources have enabled the country—unlike most sub-Saharan African countries—to maintain contacts with the outside world for centuries. Since ancient times, Ethiopian traders exchanged gold, ivory, musk, and wild animal skins for salt and luxury goods, such as silk and velvet. By the late nineteenth century, coffee had become one of Ethiopia's more important cash crops. At that time, most trade flowed along two major trade routes, both of which terminated in the far southwest in the Kefa-Jima region. From there, one route went north to Mitsiwa via Gonder and Adwa, the other along the Awash River valley to Harer and then on to Berbera or Zeila on the Red Sea.

Despite its many riches, Ethiopia would stop being a great trading state after fall of Axum. Most Ethiopians despised traders, preferring instead to emulate the country's legendary warriors and priests. After establishing a foothold in the country, Greek, Armenian, and Arab traders became the economic intermediaries between Ethiopia and the outside world. Arabs also settled in the interior and eventually dominated all commercial activity except petty trade.

When their occupation of Ethiopia ended in 1941, the Italians left behind them a country whose economic structure was much as it had been for centuries. There had been some improvements in communications, particularly in the area of road building, and attempts had been made to establish a few small industries and to introduce commercial farming, particularly in Eritrea, which Italy had occupied since 1890. But these changes were limited. With only a small proportion of the population participating in the money economy, trade consisted mostly of barter. Wage labor was limited, economic units were largely self-sufficient, foreign trade was negligible, and the market for manufactured goods was extremely small.

During the late 1940s and 1950s, much of the economy remained unchanged. The government focused its development efforts on expansion of the bureaucratic structure and ancillary services. Most farmers cultivated small plots of land or herded cattle. Traditional and primitive farming methods provided the population with a subsistence standard of living. In addition, many nomadic peoples raised livestock and followed a life of seasonal movement in drier areas. The agricultural sector grew slightly, and the industrial sector represented a small part of the total economy.

By the early 1950s, Emperor Haile Selassie I (reigned 1930–74) had renewed calls for a transition from a subsistence economy to an agro-industrial economy. To accomplish this task, Ethiopia needed an infrastructure to exploit resources, a material base to improve living conditions, and better health, education, communications, and other services. A key element of the emperor's new economic policy was the adoption of centrally administered development plans.

The First Five-Year Plan (1957–1961) sought to develop a strong infrastructure, particularly in transportation, construction, and communications, to link isolated regions. The Second Five-Year Plan (1962–1967) signaled the start of a 20-year program to change Ethiopia's predominantly agricultural economy to an agro-industrial one. The Third Five-Year Plan (1968–1973) also sought to facilitate Ethiopia's economic well-being by raising manufacturing and agro-industrial performance. However, unlike its predecessors, the third plan expressed the government's willingness to expand educational opportunities and to improve peasant agriculture.

During the First Five-Year Plan, the gross national product (GNP) increased at a 3.2 percent annual rate as opposed to the projected figure of 3.7 percent, and growth in economic sectors such as agriculture, manufacturing, and mining failed to meet the national plan's targets. The Planning Commission never assessed the performance of the Second Five-Year Plan and Third Five-Year Plan, largely because of a shortage of qualified personnel. However, according to data from the Ethiopian government's Central Statistical Authority, during the 1960/61 to 1973/74 period the economy achieved sustained economic growth. Between 1960 and 1970, for example, Ethiopia enjoyed an annual 4.4 percent average growth rate in per capita gross domestic product (GDP). Relative to its neighbors, Ethiopia's economic performance was mixed.

By the early 1970s, Ethiopia's economy not only had started to grow but also had begun to diversify into areas such as manufacturing and services. However, these changes failed to improve the lives of most Ethiopians. About four-fifths of the population were subsistence farmers who lived in poverty because they used most of their meager production to pay taxes, rents, debt payments, and bribes.

The 1974 revolution resulted in the nationalization and restructuring of the Ethiopian economy. After the revolution, the country's economy can be viewed as having gone through four phases. Internal political upheaval, armed conflict, and radical institutional reform marked the 1974-78 period of the revolution. There was little economic growth; instead, the government's nationalization measures and the highly unstable political climate caused economic dislocation in sectors such as agriculture and manufacturing. As a result of these problems, GDP increased at an average annual rate of only 0.4 percent.

In the second phase (1978–1980), the economy began to recover as the government consolidated power and implemented institutional reforms. More important, security conditions improved as internal and external threats subsided. GDP grew at an average annual rate of 5.7 percent.

In the third phase (1980–1985), the economy experienced a setback. Except for Ethiopian fiscal year (EFY) 1982/83, the growth of GDP declined. Manufacturing took a downturn as well, and agriculture reached a crisis stage, particularly due to drought that lead to widespread famine.

In the fourth period (1985–1990), the economy continued to stagnate. GDP and the manufacturing sector also grew during this period, GDP increasing at an average annual rate of 5 percent. However, the lingering effects of the 1984-85 drought undercut these achievements and contributed to the economy's overall stag.

Since 1991, the Ethiopian government has embarked on a program of economic reform, including privatization of state enterprises and rationalization of government regulation. While the process is still ongoing, the reforms have attracted foreign direct investment.

In 2015, Ethiopia has 2,700 millionaires, a number that has more than doubled since 2007. Their fortunes are mainly built-in niches of economic rents (banks, mines, etc.) without investing in structural and strategic sectors (industrial production, infrastructure, etc.) and should in no way promote economic development or represent a source of competition for Western multinationals.

The Ethiopian government is stepping up its efforts to attract foreign investors, particularly in the textile sector. They can now import their machines without customs duties, benefit from a tax exemption for ten years, rents much lower than market prices, and almost free water and electricity. Major brands have established themselves in the country, such as Decathlon, H&M and Huajian. These companies also benefit from a cheap labor force, with a monthly salary of around 35 euros. Finally, trade agreements between Ethiopia and the European Union allow them to export duty-free.

Agriculture, forestry and fishing

, agriculture accounts for almost 40.5% of GDP, 81 percent of exports, and 85 percent of the labour force. Many other economic activities depend on agriculture, including marketing, processing, and export of agricultural products. Production is overwhelmingly of a subsistence nature, and a large part of commodity exports are provided by the small agricultural cash-crop sector. Principal crops include coffee, pulses (e.g., beans), oilseeds, cereals, potatoes, sugarcane, and vegetables. Exports are almost entirely agricultural commodities, with coffee as the largest foreign exchange earner, and its flower industry becoming a new source of revenue: for 2005/2006 (the latest year available) Ethiopia's coffee exports represented 0.9% of the world exports, and oilseeds and flowers each representing 0.5%. Ethiopia is Africa's second biggest maize producer. In 2000, Ethiopia's livestock contributed to 19% of total GDP.

, some countries that import most of their food, such as Saudi Arabia, have begun planning the purchase and development of large tracts of arable land in developing countries such as Ethiopia. This land grabbing has raised fears of food being exported to more prosperous countries while the local population faces its own shortage.

Forest products are mainly logs used in construction. The silvicutural properties are used in construction and manufacturing, and as energy sources. Ethiopia's fisheries are entirely fresh water, as it has no marine coastline. Although total production has been continuously increasing since 2007, the fishing industry is a very small part of the economy. Fishing is predominantly artisanal. In 2014, nearly 45,000 fishermen were employed in the sector with only 30% of them employed full-time.

Ethiopia produced in 2018:

 * 7.3 million tons of maize (17th largest producer in the world);
 * 4.9 million tons of sorghum (4th largest producer in the world);
 * 4.2 million tons of wheat;
 * 2.1 million tons of barley (17th largest producer in the world);
 * 1.8 million tons of sweet potato (5th largest producer in the world);
 * 1.4 million tons of sugar cane;
 * 1.3 million tons of yam (5th largest producer in the world);
 * 988 thousand tons of broad bean;
 * 982 thousand tons of millet;
 * 743 thousand tons of potato;
 * 599 thousand tons of vegetable;
 * 515 thousand tons of chick pea (6th largest producer in the world);
 * 508 thousand tons of banana;
 * 470 thousand tons of coffee (6th largest producer in the world);
 * 446 thousand tons of cabbage;
 * 374 thousand tons of pea (20th largest producer in the world);
 * 322 thousand tons of onion;
 * 301 thousand tons of sesame seed (7th largest producer in the world);
 * 294 thousand tons of bell pepper;
 * 172 thousand tons of lentil (11th largest producer in the world);
 * 144 thousand tons of rice;
 * 143 thousand tons of peanut;
 * 140 thousand tons of cotton;
 * 124 thousand tons of garlic;
 * 102 thousand tons of mango (including mangosteen and guava);
 * 101 thousand tons of linseed (7th largest producer in the world);

In addition to smaller productions of other agricultural products.

Textile industry
Employees of Ethiopian garment factories, who work for brands such as Guess, H&M or Calvin Klein, receive a monthly salary of 26 dollars per month. These very low wages have led to low productivity, frequent strikes and high turnover. Some factories have replaced all their employees on average every 12 months, according to the 2019 report of the Stern Centre for Business and Human Rights at New York University

The report states: "Rather than the docile and cheap labour force promoted in Ethiopia, foreign-based suppliers have met employees who are unhappy with their pay and living conditions and who want to protest more and more by stopping work or even quitting. In their eagerness to create a 'made in Ethiopia' brand, the government, global brands and foreign manufacturers did not anticipate that the base salary was simply too low for workers to make a living from."

Energy
Waterpower and forests are Ethiopia's main energy sources. The country derives about 90 percent of its electricity needs from hydropower, which means that electricity generation, as with agriculture, is dependent on abundant rainfall. Present installed capacity is rated at about 2000 megawatts, with planned expansion to 10,000 megawatts. In general, Ethiopians rely on forests for nearly all of their energy and construction needs; the result has been deforestation of much of the highlands during the last three decades. Ethiopia has set out plans to invest $40 billion to 71 energy projects by 2030 Less than one-half of Ethiopia's towns and cities are connected to the national grid. Petroleum requirements are met via imports of refined products, although some oil is being hauled overland from Sudan. Oil exploration in Ethiopia has been underway for decades, ever since Emperor Haile Selassie I granted a 50-year concession to SOCONY-Vacuum in September 1945.

Recent oil and gas discoveries across East Africa have seen the region emerge as a new player in the global oil and gas industry. As exciting as the huge gas fields of East Africa are, however, the strong decline in oil prices and expectations for an L-shaped recovery with low prices over the coming years are increasingly challenging the economic viability of the industry in this region. The reserves are estimated at 4 Tcuft, while exploration for gas and oil is underway in the Gambela Region bordering South Sudan.

The discoveries were expected to drive billions of dollars in annual investment to the region over the next decade. According to BMI estimates, the findings in the last few years are more than that of any other region in the world, and the discoveries are expected to continue for the next few years. However, falling global oil prices are threatening the commercial viability of many of these gas prospects.

Manufacturing
A program to privatize state-owned enterprises has been underway since the late 1990s. There has been a large growth of manufacturing in Ethiopia. Several industrial parks have been built with a focus on textiles.

Transport
Prior to the outbreak of the 1998–2000 Eritrean–Ethiopian War, landlocked Ethiopia mainly relied on the seaports of Asseb and Massawa in Eritrea for international trade.

, Ethiopia uses the ports of Djibouti, connected to Addis Ababa by the Addis Ababa – Djibouti Railway, and to a lesser extent Port Sudan in Sudan. In May 2005, the Ethiopian government began negotiations to use the port of Berbera in Somaliland. By 2030, the government expects a $74 billion investment in transportation.

Road
As of 2016, there are 113066 km all-weather roads.

Air
Ethiopian Airlines, is Africa's largest and most profitable airline. It serves 132 destinations and has a fleet size of 141 aircraft.

Rail
The Ethiopian railway network has been rapidly expanding. In 2015, the first light rail in Africa was opening in Addis Ababa. In 2017, the electric Addis Ababa-Djibouti railway began operations. Presently, two other electric railways are under construction: Awash-Woldiya and Woldiya-Mekelle.

Telecommunications and technology
Telecommunications are provided by a state-owned monopoly, Ethio Telecom, formerly the Ethiopian Telecommunications Corporation. In 2020, ministers set out a national transformation strategy called Digital Ethiopia 2025. Its aim is to prepare the country for the development of an economy based on digital technology.

Tourism
Aside from wholesale and retail trade, transportation, and communications, the services sector consists almost entirely of tourism. Developed in the 1960s, tourism declined greatly during the later 1970s and the 1980s under the military government. Recovery began in the 1990s, but growth has been constrained by the lack of suitable hotels and other infrastructure, despite a boom in construction of small and medium-sized hotels and restaurants, and by the impact of drought, the 1998–2000 war with Eritrea, and the specter of terrorism. In 2002 more than 156,000 tourists entered the country, many of them Ethiopians visiting from abroad, spending more than US$77 million. In 2008, the number of tourists entering the country had increased to 330,000. A decade later, in 2019, Ethiopia registered a record of 812,000 tourists visiting the country, bringing a revenue of $3.55 bn (4.2 percent of the gross national product).

Macroeconomic trends
The following table displays the trend of Ethiopia's gross domestic product at market prices, according to estimates by the International Monetary Fund with figures in millions of Ethiopian Birr.

The current GDP (USD) per capita of Ethiopia shrank by 43% in the 1990s. The economy saw continuous real GDP growth of at least 5% since 2004.

The following table shows the main economic indicators in 1980–2023. Inflation below 5% is in green. Ethiopia's economy experienced strong, broad-based growth averaging 9.4% a year from 2010/11 to 2019/20. Ethiopia's real gross domestic product (GDP) growth slowed down to 6.1% in 2019/20 due to the COVID-19 pandemic. Industry, mainly construction, and services accounted for most of the growth. Agriculture was not affected by the COVID-19 pandemic and its contribution to growth slightly improved in 2019/20 compared to the previous year. Private consumption and public investment explain demand-side growth, the latter assuming an increasingly important role.

External trade
Until 2013, the major agricultural export crop was coffee, providing about 26.4% of Ethiopia's foreign exchange earnings. In the beginning of 2014, oilseeds exports have been more important. Coffee is critical to the Ethiopian economy. More than

15 million people (25% of the population) derive their livelihood from the coffee sector.

Other exports include live animals, leather and leather products, chemicals, gold, pulses, oilseeds, flowers, fruits and vegetables and khat (or qat), a leafy shrub which has psychotropic qualities when chewed. Cross-border trade by pastoralists is often informal and beyond state control and regulation. In East Africa, over 95% of cross-border trade is through unofficial channels and the unofficial trade of live cattle, camels, sheep and goats from Ethiopia sold to Somalia, Kenya and Djibouti generates an estimated total value of between US$250 and US$300 million annually (100 times more than the official figure). This trade helps lower food prices, increase food security, relieve border tensions and promote regional integration. However, there are also risks as the unregulated and undocumented nature of this trade runs risks, such as allowing disease to spread more easily throughout the region. Furthermore, the government of Ethiopia is purportedly unhappy with lost tax revenue and foreign exchange revenues. Recent initiatives have sought to document and regulate this trade.

Dependent on a few vulnerable crops for its foreign exchange earnings and reliant on imported oil, Ethiopia lacks sufficient foreign exchange. The financially conservative government has taken measures to solve this problem, including stringent import controls and sharply reduced subsidies on retail gasoline prices. Nevertheless, the largely subsistence economy is incapable of supporting high military expenditures, drought relief, an ambitious development plan, and indispensable imports such as oil; it therefore depends on foreign assistance.

In December 1999, Ethiopia signed a $1.4 billion joint venture deal with the Malaysian oil company, Petronas, to develop a huge natural gas field in the Somali Region. By the year 2010, however, implementation failed to progress and Petronas lost its license to develop the field, which is now being invested in by Chinese company, Poly-GCL Petroleum. Ethiopia has already begun exporting electricity to Kenya, South Sudan and Djibouti. Earning from this has generated US$300 million annually. After the completion of the Grand Ethiopian Renaissance Dam (GERD) total generation of exports to neighboring countries is expected to bring in us$1 billion annually to the economy. The dam will be the largest hydroelectric power plant in Africa when completed, as well as among the 20 largest in the world.

title: Economy of Ethiopia


text:
Telecommunications in Ethiopia

Telecommunications in Ethiopia is a monopoly in the control of Ethio telecom, formerly the Ethiopian Telecommunications Corporation (ETC). As of 2012, 20.524 million cellular phones and 797,500 main line phones were in use.

Overview
The telephone system in Ethiopia consists of open wire and microwave radio relay systems adequate for government use. Domestic systems are open wire; microwave radio relay; radio communication in the high frequency, very high frequency, and ultra high frequency; two domestic satellites provide the national trunk service. International systems are open wire to Djibouti and Sudan; microwave radio relay to Djibouti and Kenya; and satellite earth stations are 3 Intelsat (1 Atlantic Ocean and 2 Indian Ocean).

The Ethiopian dial plan changed on 17 September 2005. City codes (i.e., internal prefixes) changed from two digits to three (or, from outside Ethiopia, one digit to two). Phone numbers changed from six digits to seven.

In 2007, there were 89 internet hosts. There were 447,300 internet users in 2009. In 2010, just 0.75 percent of the population were using the Internet, one of the lowest rates in the world. The internet domain in Ethiopia is .et.

History
The first telegraph line in Ethiopia was constructed in the years 1897–1899 between the cities of Harar and the capital Addis Ababa. This was extended in 1904 by a line that ran from Addis Ababa through Tigray into Eritrea and to Massawa; and the next year by a line again from Addis Ababa to Gore in the province of Illubabor and Jimma in Kaffa.

The first telephones were brought by Ras Makonnen from Italy in 1890, and connected between the Palace and the Imperial treasury; the sound of disembodied voices frightened the local priests, who thought it was the work of demons. The Emperor Menelik II responded to their protests with disdain, and later used the telephone to give orders to his provincial governors. Emperor Haile Selassie had begun the process of introducing radio transmitters to the country for civilian and military use in the years before the Italian invasion.

Current status
According to the ETC, the average rural inhabitant of Ethiopia has to walk 30 kilometers to the nearest phone. The ETC announced 7 September 2006 a program to improve national coverage, and reduce the average distance to 5 kilometers.

Since 2008 CDMA2000 and WCDMA is available in certain areas.

Since 26 September 2017 until end of 2018 it was not possible to buy and use Ethio telecom SIM cards in mobile devices that have not been purchased in Ethiopia or registered with the authorities. Local advice suggests travellers should register their phone in the customs arrival hall at Bole Airport on arrival if they intend to use a local SIM card. For travellers, local prepaid SIMs are available at small shops, Ethio telecom kiosks and hotels. Satellite phones may require letter of permission from the ETC prior to bringing such phones through customs.

Use of voice over IP services such as Skype and Google Talk was prohibited by telecommunications legislation in 2002. Personal use of these services was legalised by the Proclamation on Telecom Fraud Offences of 2012.

Since the changes and upgrade of equipment in the mid-2000 the telecommunication network is frequently out of work or overloaded, callers using both the landlines and mobile network are unable to connect, the situation is made worse by inclement weather. The ETC has not addressed this issue publicly nor admitted that the coverage and service is below par.

Ethio telecom has launched the Fourth Generation (4G) Long-Term Evolution (LTE) service on 21 March 2015 in line with the help of the Chinese company HUAWEI.

Ethio telecom Corporate Compunction Officer, Abdurahim Mohammed, stated that the rural telecom access within 5 km radius service has currently reached 96 per cent. As part of the efforts to expand its service and improve network quality, Ethio telecom had built 725 stations in Addis Ababa alone during the past 20 years. Damages on fiber optic cables and power interruptions are among the challenges the service provider faced in its expansion and network quality improvement efforts.

title: Telecommunications in Ethiopia