Analysis Of Ethiopian Import Martial And Import Expenses For 2021/2022

Import material plays a vital role in a country's economic performance, competitiveness, and international trade relations. In this article, we will delve into the annual import data of Ethiopia for the fiscal year 2021/2022 and analyze the patterns and key insights of this year, while also comparing them to previous years.

The latest data reveals a significant shift in import trends, as the total merchandise import bill has reached USD 18.1 billion, indicating a substantial 26.6 percent annual growth. This surge can be attributed to increased import bills of consumer goods, fuel, and semi-finished goods. However, payments for capital goods, raw materials, and miscellaneous goods have experienced a decline. Consequently, the import-to-GDP ratio has risen to 14.3 percent, compared to 12.8 percent recorded a year ago.

Imports of semi-finished goods have amounted to USD 3.7 billion, reflecting a notable annual growth of 39.1 percent. This surge can be primarily attributed to a substantial increase in the import of fertilizers, which has surged by 98.3 percent. As a result, the share of semi-finished goods in total merchandise import payments has increased to 20.6 percent from 18.8 percent, recorded last year.

The import of consumer goods has seen a remarkable increase, with a total of USD 7.6 billion, representing a 39.06 percent growth compared to the previous year. This surge can be attributed to a rise in the import of non-durable goods by 45.56 percent and durable goods by 1.25 percent. Consequently, the share of consumer goods in total merchandise imports has risen to 42.1 percent from 38.3 percent, observed a year earlier.

Fuel imports have experienced a significant increase of 78.03 percent to reach USD 3.454 billion. This surge is primarily attributed to an 87.3 percent rise in international fuel prices, despite a 4.9 percent decline in export volume. Consequently, the share of fuel in total merchandise imports has risen to 19.1 percent from 13.6 percent, observed during the same period last year.

In contrast to the overall import growth, imports of capital goods have declined by 21.75 percent. This decline can be attributed to decreases in imports of transport, industrial, and agricultural capital goods. Consequently, the share of capital goods in total merchandise imports has slowed down to 16.8 percent from 27.2 percent, recorded during the same period last year.

Import of raw materials has experienced a decline of 17.57 percent, accounting for only 0.6 percent of the total merchandise imports during the review year. This decrease suggests a potential slowdown in raw material demand.

The import of miscellaneous items has continued its downward trend for the second consecutive year, showing a decline of 15.14 percent. It accounted for 0.8 percent of the total merchandise imports during the review year.