Ethiopia Balance of Trade

Ethiopia's trade deficit increased by 10.4% in the second quarter of 2024, reaching $3.81 billion from $3.45 billion in the first quarter. This widening deficit resulted from a significant rise in imports which grew from $4.38 billion to $5.07 billion while export growth remained modest. Foreign exchange shortages and high import demand exceeding export earnings contributed to the deficit. Ethiopia's persistent trade deficits stem from a limited export product range and logistical challenges. Ethiopia's record low balance of trade was -$4.09 billion in Q4 2023 and record high was -$1.75 billion in Q2 2020.