IMF: Ethiopia's GDP to hit $78B this year, Kenya at $75B

IMF: Ethiopia's GDP to hit $78B this year, Kenya at $75B

kilam said:

Why Nairobi is East Africa’s most expensive capital city

Posted on May 22, 2016 by Judy Mwende

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Nairobi is the most expensive city in East Africa
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But the cost of living even in the same country varies from place to place. I'd expect Dar to be more expensive than Dodoma for example.

Nairobi is undoubtedly the most expensive city.......by far in fact in Kenya.
A one bedroom apt could cost u upto 30000Ksh or even more in some places, but if u go to Eldoret for example, u may not find a one bdrm apartment costing that much, the most it would go for is about 8000ksh.

But here, we are talking about the overall cost of living of the entire country.
 
Iconoclastes said:
But the cost of living even in the same country varies from place to place. I'd expect Dar to be more expensive than Dodoma.

Nairobi is undoubtedly the most expensive city.......by far in fact in Kenya.
A one bedroom apt could cost u upto 30000Ksh or even more in some places, but if u go to Eldoret for example, u may not find a one bdrm apartment costing that much, the most it would fo for is about 8000ksh.

But here, we are talking about the overall cost of living of the entire country.
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The cost of living in small towns of Tanzania is cheaper than that of small towns in Kenya. Kwa uzoefu wangu, bei za viwanja vya kujengea nyumba Eldoret ni kubwa kuliko Dar es Salaam.
 
Jay456watt said:
economy.jpg

Ethiopia has opened a Sh371.8 billion ($3.61 billion) gap on Kenya’s economy fuelled by a decade of double-digit GDP growth, cementing its position as Eastern Africa’s emerging power house.

The International Monetary Fund’s (IMF) latest data indicates that Ethiopia’s annual economic output, also known as the gross domestic product (GDP), hit $72.52 billion (Sh7.4 trillion) last year from $64.68 billion in 2015 and is expected to touch $78.3 billion this year.

Kenya, which lost the Eastern Africa economic leader position to Ethiopia in 2015, recorded a GDP of Sh7 trillion ($68.91 billion) last year compared to $63.62 billion in 2015 and is expected to touch $75 billion this year.

Ethiopia’s strong performance exceeded projections for last year by about $3 billion, the IMF economic outlook 2017 report shows.

The Horn of Africa nation has now effectively firmed its grip as the region’s economic giant, but trails Kenya in terms of per capita income — which measures average wealth of citizens.
Ethiopia’s growth is largely fuelled by public-led spending on infrastructure and a robust domestic demand, the IMF report says.
While acknowledging Ethiopia’s headline growth figures, chief executive of the Institute of Economic Affairs Kwame Owino said that Addis, which is starting from a relatively low development base, is playing catch-up to make up for years of under-investment.

It remains to be seen whether Ethiopia will sustain the growth momentum, Mr Owino said.

“With a population twice Kenya’s, Ethiopia’s larger economy is expected just by looking at the labour force and huge domestic market that have served to attract investors,” he said.

The IMF report shows Tanzania is the region’s third-largest economy with a GDP size of $47.1 billion last year, while Uganda posted an output of $26.1 billion.

Ethiopia, whose population is 91.1 million, or about twice Kenya’s, may boast a bigger economy but Kenya’s population is nearly twice as rich on average terms.

Ethiopia’s GDP per capita stood at $795.2 (Sh81,905) last year and is projected to rise to $845.9 (Sh87,127) this year compared to Kenya’s $1,516.3 (Sh156,178) last year, which is expected to hit $1,607.1 (Sh165,531) this year.

This effectively means Ethiopia, despite being larger, is categorised as a low-income economy (GDP per capita of less than $1,045) while Kenya is in the lower middle-income group (between $1,045 and $4,125).

In 2015, Kenya officially lost the bragging rights as the region’s largest economy as a result of Ethiopia’s breakneck speed in modernising its roads, railway and power plants.

Kenya’s GDP was nearly twice Ethiopia’s 10 years ago at $25.8 billion in 2006 compared to the latter’s $15.2 billion in the same year.
It has taken only a decade for the Horn of Africa nation to race past Nairobi following a robust growth that averaged 10.8 per cent since 2005.

“Ethiopia’s autocracy system, somehow modelled on China’s, means the government has unfettered power to channel resources in sectors that promise growth. But this has its shortcomings as witnessed in recent unrests,” said Anzetse Were, a development economist.

Ethiopia has styled itself as an emerging industrial hub, offering manufacturers, mostly Chinese firms, cheaper electricity at Sh6.9 (6.7 US cents) per kilowatt hour (kWh), half Kenya’s industrial tariff of Sh14.22 (13.8 US cents).

Its public debt to GDP, the driver of the investments, stood at the same level as Kenya’s at 49 per cent last year and is expected to grow to 51.8 per cent this year, lower than Kenya’s 52.1 per cent, the IMF says.

Ethiopia’s ongoing projects include the $5 billion (Sh515 billion) Grand Renaissance Dam with a generation capacity of 6,000 megawatts.

The country last year commissioned a railway linking its capital Addis Ababa to the Red Sea port city of Djibouti, fast tracking the movement of goods and people across its vast territory.

In 2015, Ethiopia launched a 32-kilometre light rail project in the capital city, the first metro service in sub-Saharan Africa at a cost of $475 million (Sh48.9 billion).

While Kenya has also raised its public investments in recent years, including roads and the nearly completed Sh327 billion standard gauge railway, it trails Ethiopia.A February report by consulting group Deloitte showed that Ethiopia’s expenditure on infrastructure projects stands at 39 per cent of GDP, above the global ideal level of 30 per cent while Kenya’s is 21.5 per cent.

The IMF report shows that South Africa continued with its slide in GDP size from a peak of $416 billion in 2011 to $294.1 billion last year, to emerge second in Africa behind Nigeria’s $405.9 billion in 2016.

Analysts reckon that another edge Kenya has over its northern neighbour is that Nairobi runs a comparatively more open economy, unlike Ethiopia which has closed most sectors like banking to foreign investors and the state rations of foreign currency.

A UN African Economic Outlook report released on Monday tipped Ethiopia to be the biggest recipient of private equity ($4.4 billion) this year in the region, beating Kenya ($1.3 billion), thanks to its favourable industrial policy.
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This is expected with their massive investments in crazy infrastructure like this one that cuts thru downtown..I hope we dont do this..its just ugly
33907944724_92d06bf230_b.jpg
 
Tobaaa said:
Ni miji michache ambayo ina maisha ghali na kadri ya upeo wangu ,dar na arusha ndo zina cost kubwa za maisha halafu kumbuka CPI inahitaji busket of goods ambazo ni essential na huwa consumed na part kubwa ya population kama chakula ambacho kwa Tanzania ni bei rahisi...

Ndio maana huwa nawaonesha ndugu zanguni wakenya kuwa tuna tofauti kubwa sana ya kiuchumi baina yetu ambapo comparisons za kwenye makaratasi zinaweza zisiakisi hali halisi... Kenyans mna large retail business ukilinganisha nasi lakini haimaanishi kuwa mna maisha bora kutokana na ukweli kuwa lifestyles zetu ni tofauti
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I dont want to sound arrogant, but Kenyans have higher standards of life than Tanzania. Virtually all methods attempting to metricize the standards of living in countries, (even the most inaccurate, unreliable methods u guys have always tried to dispute, ie gdp per capita), or even the threcently formulated and more accurate methods (Hdi and Mpi), all point to that fact!


ophi.bmp


The multidimensional poverty index graph.
 
Kobello said:
It's actually the Local Purchasing power that matters. Meaning, the local income (average) can get more locally relative to what another average local income can get in its own locality.
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Why does it matter more than the national purchasing power which we are discussing here.
 
Iconoclastes said:
I dont want to sound arrogant, but Kenyans have higher standards of life than Tanzania. Virtually all methods attempting to metricize the standards of living in countries, (even the most inaccurate, unreliable methods u guys have always tried to dispute, ie gdp per capita), or even the threcently formulated and more accurate methods (Hdi and Mpi), all point to that fact!


ophi.bmp


The multidimensional poverty index graph.
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The polygon on below 1.25 dollar is very ugly in correspondence to Tanzania, Did someone mark out that??
 
Iconoclastes said:
Why does it matter more than the national purchasing power which we are discussing here.
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A locality can be up to a galactic level. What you are discussing here isn't the purchasing power. Besides, you misinterpreted information from your source - which is pretty reliable - to make a point. I know you meant well, but it's just counter to the good intentions of the publisher and a bit toxic to hungry minds of our colleagues here.

So, the cost of living is lower in Tanzania (compared to Kenya) and this, brings a whole different picture of the aforesaid. It's just my hope that you will be a bit happier to notice that our economies are almost the same and all these three Nations (apart from having a lot of issues) are cruising at a very decent speed towards economic development.

Ain't it nice?
 
kilam said:
The cost of living in small towns of Tanzania is cheaper than that of small towns in Kenya. Kwa uzoefu wangu, bei za viwanja vya kujengea nyumba Eldoret ni kubwa kuliko Dar es Salaam.
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What evidence do u have? Na hapa tunaangilia consumable goods kama vyakula na rent, uwanja.....I am not sure if an acre of land is more costly than Dar, but we are not looking at that.
 
Tobaaa said:
Nilitoa sekta moja kama mfano tu na Ethiopia imejitahidi so far kwa 40 percent...

By the way ninavyojua mara nyingi uchumi unapima vile vitu vinavyohesabiwa in monetary terms kwa sababu ukiingiza vitu vinginevyo ni kamaa utaharibu na ndio maana subsistence part of economy inakuwa kama less concerned... je hiyo idadi ya wanaoishi kwa chini ya dola mbili or moja yaani under poverty line katika nchi hizo huwa inaangalia wale watu wanaoishi kwa subsistence production without monetary valuation of their produc... kwa mfano bibi yangu yupo vyema tu kwa namna hiyo maana atanunua vitu kwa nadra kama mafuta na hula milo mitatu ya afya je, huyu katika hizo data unazoziamini huwa zinaliangalia hili suala
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Hizi ndio point haswa, hongera kwa kukiruhusu kichwa chako kufikiri vyema. Ni ujinga kuipima nchi kwa kugawanya pato la umma wote. Nchi inaweza kuwa na GDP kubwa lililochangiwa na uwepo wa mabilionea wachache tu ktk nchi yenye dimbwi kubwa la walalahoi.
 
Iconoclastes said:
What evidence do u have? Na hapa tunaangilia consumable goods kama vyakula na rent, uwanja.....I am not sure if an acre of land is more costly than Dar, but we are not looking at that.
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Kama una rafiki aliyewahi kuishi/anayeishi Tanzania muulize atakwambia, ni jambo lipo uchi hilo. Hamna sababu ya kubishana wakati kila kitu kipo wazi.
 
Kobello said:
A locality can be up to a galactic level. What you are discussing here isn't the purchasing power. Besides, you misinterpreted information from your source - which is pretty reliable - to make a point. I know you meant well, but it's just counter to the good intentions of the publisher and a bit toxic to hungry minds of our colleagues here.

So, the cost of living is lower in Tanzania (compared to Kenya) and this, brings a whole different picture of the aforesaid. It's just my hope that you will be a bit happier to notice that our economies are almost the same and all these three Nations (apart from having a lot of issues) are cruising at a very decent speed towards economic development.

Ain't it nice?
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I presented that source in order to challenge the false, widely held assumption among your compatriots, who have not even been to kenya that food and shelter is pretty expensive here. They would proceed to argue further that it is bcos of the shortage of both, that all the best lands are possessed by a few.
The cost of living in Kenya and Tanzania is more or less the same. Unless u present the evidence to confirm that the prices of the basket goods are muchc more costly in Kenya.

The present trajectory of economic development in the region is impressive, it portrays a bright future for all the countries. However, let us not kid ourselves....or rather u Tanzanians do not kid yourselves that your economy is the same as Kenya's.

Look at the size of both economies first, proceed to break them down into different aspects and scrutinize the levels of progress in each....the economies are simply not exactly the same.
 
kilam said:
Kama una rafiki aliyewahi kuishi/anayeishi Tanzania muulize atakwambia, ni jambo lipo uchi hilo. Hamna sababu ya kubishana wakati kila kitu kipo wazi.
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Sawa, MK254

" Kama una rafiki aliyewahi kuishi/anayeishi Tanzania muulize atakwambia, ni jambo lipo uchi hilo. Hamna sababu ya kubishana wakati kila kitu kipo wazi"

Ni kweli?
 
Tobaaa said:
91 million lakini kwa aina ya uchumi wao inakuwaje , I'm less informed about Ethiopia'a economy lakini ninavyojua ni state controlled hivyo, naweza nikasema distribution of income ni kubwa kuliko nchi za kibepari... GDP per capital bado si kigezo sahihi maana hakioneshi distribution of national cake among the citizens...

Ila itawachukua muda wakenya kurudisha himaya yenu maana hawa watu wameshajijua hawana rasilimali hivyo wameegemea katika service sector ambayo inaangalia zaidi manpower na si resources.. All in all hebu nipe hali halisi ya uchumi wa Ethiopia kwa mtu mmoja mmoja
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There is no distribution of wealth in ethiopia

Let me Summarise what i understand about ethiopian economy

Ethiopia has less money for projects than
Kenya or Tanzania but the only thing making Ethiopia Grow is that they are Autocratic ....they decided to follow the chinese system...

In that In Ethiopia their parliament has all its members coming from the same party

If they want to Construct a road today that will pass through route A which is full of Housing They dont /wont have much resistance their decision is final(government) that is

So with this kind of powee the goveenment has established areas that will add value to the ethiopian economy and put all their money in these sectors neglecting the rest.....they dont have opposition unlike here in Kenya

If government today wants a railway to pass through A
They will get sued or Halted
And rerouted to B then C then finally D 5yrs later

While in Ethiopia the projecy will be already done....like their SGR and GIBE DAM

.......they will have better growth but the wealth will not reach the people in the short term but long run unlike here it will be both but will take a longertime to achieve
 
What most people here don understand as concern with Kenya being "not poor" or middle income status is that
There are two different living standards in two different countries

A person living in Kibera probably earns 350-700kshs a day ie 3.5-7$ a day bt life in Kenya is way mre expensive than in tanzania so that guy may look poor buy if this guy would somehow work in Kenya and live inTZ HEwill be living a betterlife than most Tanzanians .....

Nikiskia hzi comments eti kenya kuna maskini wengi kuliko TZ nashangaa tu
 
Iconoclastes said:
That is a perception, but not true
.

Cost Of Living Comparison Between Ethiopia And Kenya


Cost Of Living Comparison Between Kenya And Tanzania
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Cost of living is higher in Kenya baba

Ndio maana PPP ya TZ imetushinda

Ndio maana Vitu kwa Border zote za kenya ni cheaper

Ndio maana Sukari ya Somalia kilo ni 20/- Kenya ni 150

Ndio maana kununua magari Uganda Alafu uingishe Kenya ni Cheaper.....

Stop contradicting urself mkuu


Arent you the one tulikuwa tuna explainia Mwanzi1 juu ya PPP?
 
Or maybe corrupt cartels are Making cost of living in Kenya Rise cause no other country in EAC is experiencing this high costs
 
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