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ETHIOPIA'S CHRONIC UNDERPERFORMANCE.

Asia Africa Intelligence Wire

| January 01, 2004 | COPYRIGHT 2004 Financial Times Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

(From Market - Africa/Mid-East)

Ethiopia has more than sufficient natural and human resources to be one of Africa's most dynamic consumption hubs, but weak internal demand and a lack of industrial competitiveness will severely limit commercial activity for the foreseeable future

On the surface, Ethiopia's estimated GDP growth of 4.2 percent in 2003 and 5.9 percent in 2004 appears to be enough to improve the living standard of the average household, but that has not proven to be the case. The benefits of economic expansion are not trickling down to the average citizen. In fact, an unsavory mix of rising unemployment and deteriorating real income is eating into purchasing power.

Ethiopia's purchasing power parity per capita of US$810 is among the world's lowest and is ...

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