In 2022, Ethiopia scored almost 0.5 in the Human Development Index (HDI), which indicated a low level of development. The country experienced no change in the HDI score since the 2019. However, an improvement was recorded from 2000 onwards. That year, Ethiopia's score was 0.29, meaning that the country had a lower human development. The country's categorization was low throughout the period under review.

The aim of the Human Development Report is to stimulate global, regional and national policy-relevant discussions on issues pertinent to human development. Accordingly, the data in the Report require the highest standards of data quality, consistency, international comparability and transparency. The Human Development Report Office (HDRO) fully subscribes to the Principles governing international statistical activities.

The HDI was created to emphasize that people and their capabilities should be the ultimate criteria for assessing the development of a country, not economic growth alone. The HDI can also be used to question national policy choices, asking how two countries with the same level of GNI per capita can end up with different human development outcomes. These contrasts can stimulate debate about government policy priorities. The Human Development Index (HDI) is a summary measure of average achievement in key dimensions of human development: a long and healthy life, being knowledgeable and have a decent standard of living. The HDI is the geometric mean of normalized indices for each of the three dimensions.

The 2019 Global Multidimensional Poverty Index (MPI) data shed light on the number of people experiencing poverty at regional, national and subnational levels, and reveal inequalities across countries and among the poor themselves.Jointly developed by the United Nations Development Programme (UNDP) and the Oxford Poverty and Human Development Initiative (OPHI) at the University of Oxford, the 2019 global MPI offers data for 101 countries, covering 76 percent of the global population. The MPI provides a comprehensive and in-depth picture of global poverty – in all its dimensions – and monitors progress towards Sustainable Development Goal (SDG) 1 – to end poverty in all its forms. It also provides policymakers with the data to respond to the call of Target 1.2, which is to ‘reduce at least by half the proportion of men, women, and children of all ages living in poverty in all its dimensions according to national definition'.

Compared to other African countries, Seychelles scored the highest in the Human Development Index (HDI) in 2022. The country also ranked 67th globally, as one of the countries with a very high human development. This was followed by Mauritius, Libya, Egypt, and Tunisia, with scores ranging from 0.80 to 0.73 points. On the other hand, Central African Republic, South Sudan, and Somalia were among the countries in the region with the lowest index scores, indicating a low level of human development.

As of 2020, the median age stood at 19.5 years in Ethiopia, which is an increase of nearly a year compared to the previous four years. Despite the increment, the median age remained low, indicating a high fertility rate among Ethiopian population. Looking at the population from a different perspective, the human development index scored countries based on health and living standards, in which Ethiopia registered a steady but low level of development in 2019. The country experienced a slight increase in the HDI score since the previous year, which was 0.48. Other measures such as the gender gap index and the economic freedom give further insights into Ethiopia’s population.

Gender gap index score

The overall gender gap index score of Ethiopia amounted to 0.69, ranking 97th out of 156 listed countries globally in 2021. It indicates the discrepancy between genders in four different areas: economic participation and opportunity, educational attainment, health and survival, and political empowerment. Categorizing the index score by industry, Ethiopia scored low (0.38) in political empowerment in 2021, indicating a low share of women in politics. Health and survival, on the other hand, had a more equal score of 0.97.

Economic freedom in Ethiopia

 Concerning the economic freedom of Ethiopia, which is an index based on 12 categories ranging from property rights to financial possibilities, the country scored 53.6 in 2021. This was slightly lower compared to Africa’s average (55.1). However, Ethiopia registered a steady increase from 2013 onwards, indicating slight improvements in the economic freedom of the people living there.

Seychelles had the largest Gross Domestic Product (GDP) per capita in Africa as of 2024. The value amounted to 21.87 thousand U.S. dollars. Mauritius followed with around 13 thousand U.S. dollars, whereas Gabon registered 9.31 thousand U.S. dollars. GDP per capita is calculated by dividing a country’s GDP by its population, meaning that some of the largest economies are not ranked within the leading ten. Impact of COVID-19 on North Africa’s GDP When looking at the GDP growth rate in Africa in 2024, Libya had the largest estimated growth in Northern Africa, a value of 7.8 percent compared to the previous year. Niger and Senegal were at the top of the list with rates of 10.4 percent and 8.3 percent, respectively. During the COVID-19 pandemic, the impact on the economy was severe. The growth of the North African real GDP was estimated at minus 1.1 percent in 2020. However, estimations for 2022 looked much brighter, as it was set that the region would see a GDP growth of six percent, compared to four percent in 2021.
Contribution of Tourism Various countries in Africa are dependent on tourism, contributing to the economy. In 2023, travel and tourism were estimated to contribute 182.6 billion U.S. dollars, a clear increase from 96.5 in 2020 following COVID-19. As of 2024, South Africa, Mauritius, and Egypt led tourism in the continent according to the Travel & Tourism Development Index.