Ethiopia officially known as the Federal Democratic Republic of Ethiopia, is a country located in the Horn of Africa. It is bordered by 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 about 87.9 million inhabitants, Ethiopia is the most populous landlocked country in the world, as well as the second-most populated nation on the African continent. It occupies a total area of 1,100,000 square kilometres (420,000 sq mi), and its capital and largest city is Addis Ababa.
Ethiopia is a multilingual society with around 80 ethnic groups, with the two largest being the Oromo and the Amhara. It is the origin of the coffee bean. Ethiopia is a land of natural contrasts; with its vast fertile West, jungles, and numerous rivers, the world's hottest settlement of Dallol in its north, Africa's largest continuous mountain ranges and the largest cave in Africa at Sof Omar. Ethiopia has the most UNESCO World Heritage Sites in Africa.
The predominant climate type is tropical monsoon, with wide topographic-induced variation. The Ethiopian Highlands cover most of the country and have a climate which is generally considerably cooler than other regions at similar proximity to the Equator. Most of the country's major cities are located at elevations of around 2,000–2,500 m (6,562–8,202 ft) above sea level, including historic capitals such as Gondar and Axum.
Ethiopia's growth performance and considerable development gains came under threat during 2008 and 2011 with the emergence of twin macroeconomic challenges of high inflation and a difficult balance of payments situation. Inflation surged to 40% in August 2011 because of loose monetary policy, large civil service wage increase in early 2011, and high food prices. For 2011/12, end-year inflation was projected to be about at about 22 percent and single digit inflation is projected in 2012/13 with the implementation of tight monetary and fiscal policies.
Ethiopia has 681 km of railway, which mainly consists of the Addis Ababa – Djibouti Railway, with a 1,000 mm (3 ft 3 3⁄8 in) narrow gauge. At present the railway is under joint control of Djibouti and Ethiopia, but negotiations are underway to privatize this transport utility. The railroad is currently being rebuilt and electrified by Chinese and Turkish companies and is scheduled to be completed by September, 2015. The new railroad will be 756 km-long and is expected to reduce the travel time from Addis Ababa to Djibouti by half to less than ten hours with a designated speed of 120 km/hour.
Ethiopia has 58 airports as of 2012. Among these, the Bole International Airport in Addis Ababa and the Aba Tenna Dejazmach Yilma International Airport in Dire Dawa accommodate international flights. Ethiopian Airlines is the country's flag carrier, and is wholly owned by the Government of Ethiopia. From its hub at the Bole International Airport, the airline serves a network of 62 international destinations and 16 domestic ones. It is also one of the fastest-growing carriers in the industry and one of Africa's largest airlines.