Ethiopia is an agricultural country, with farm products accounting for over half of the country's gross domestic product and 90% of its exports (mainly coffee). Economically, the great majority of the population is engaged in subsistence farming. The chief farm products are coffee, teff and other millets, sorghum, barley, wheat, corn, plantains, peas, potatoes, oilseeds, cotton, and sugarcane. Large numbers of cattle, sheep, and goats are raised.

Industry, which is largely state-run, is mostly restricted to agricultural processing and the manufacture of consumer goods. The main industrial centers are Addis Ababa, Dire Dawa , and Nazret. The leading manufactures include processed food, beverages, textiles, leather, chemicals, metal products, and cement. No large-scale mineral deposits have been found in Ethiopia; gold, platinum, salt, limestone, iron ore, and sulfur are extracted in small quantities. Foreign investment in the mining sector began in the 1990s.

Ethiopia has a poor transportation network, with few year-round roads. The country's one rail line links Addis Ababa and Djibouti; plans for its revitalization were announced in 1998. The chief ports serving Ethiopia, which became landlocked with Eritrean independence, are in other countries: Djibouti , in the country of Djibouti, and Aseb and Massawa , in Eritrea.

The annual value of imports into Ethiopia is usually considerably higher than the value of its exports. The principal imports are food, petroleum and petroleum products, machinery, motor vehicles, chemicals, and manufactured consumer goods; the main exports are coffee, hides and skins, oilseeds, grain, and gold. The leading trade partners are Germany, Saudi Arabia, Italy, and Japan.