Republic ofEthiopia is a sovereign state located in the Horn of Africa. It shares a borderwith Eritrea to the north and northeast, Djibouti and Somalia to the east,Sudan and South Sudan to the west, and Kenya to the south. With nearly 100million inhabitants, Ethiopia is the most populous landlocked country in theworld, as well as the second-most populous nation on the African continentafter Nigeria. It occupies a total area of 1,100,000 square kilometres (420,000sqm), and its capital and largest city is Addis Ababa.
Ethiopia is oneof the founding members of the UN, the Group of 24 (G-24), the Non-AlignedMovement, G-77 and the Organisation of African Unity. Ethiopia's capital cityAddis Ababa serves as the headquarters of the African Union, the Pan AfricanChamber of Commerce and Industry, the United Nations Economic Commission forAfrica, African Aviation Training HQ, the African Standby Force, and much ofthe global NGOs focused on Africa. In the 1970s and 1980s, Ethiopia sufferedfrom civil wars and communist purges which devastated its economy. The countryhas begun to recover recently however, and now has the largest economy (by GDP)in East Africa and Central Africa.According to Global Fire Power, Ethiopia hasthe 42nd most powerful military in the world, and the third most powerful inAfrica.
According to theIMF, Ethiopia was one of the fastest growing economies in the world,registering over 10% economic growth from 2004 through 2009. It was thefastest-growing non-oil-dependent African economy in the years 2007 and 2008.In 2015, the World Bank highlighted that Ethiopia had witnessed rapid economicgrowth with real domestic product (GDP) growth averaging 10.9% between 2004 and2014.
Ethiopia'sgrowth performance and considerable development gains came under threat during2008 and 2011 with the emergence of twin macroeconomic challenges of highinflation and a difficult balance of payments situation. Inflation surged to40% in August 2011 because of loose monetary policy, large civil service wageincrease in early 2011, and high food prices. For 2011/12, end-year inflationwas projected to be about 22%, and single digit inflation is projected in2012/13 with the implementation of tight monetary and fiscal policies.