Ethiopia’s economy is expected to grow by 10.5 percent in 2015/16 budget year, the World Bank   said on May 22, 2015, adding inflation will remain in single digits in this period.

The World Bank also said this fiscal year, the country’s economy is expected to grow by 9.5 percent.
Lars Christian Moller, the World Bank's lead economist and program leader for Ethiopia, told Reuters lowering of oil prices should help expedite the country’s growth in 2015/16.

"If lower oil prices are passed on to consumer in the form of lower fuel prices, it gives additional disposable income to consumers," Moller said.

Moller furthered, the service and the agricultural sectors are the possible sectors that bring about growth, including the construction sector.

He also noted growth was lessened in 2014/15 as a result of below par rains.

According to the bank the average inflation is predicted to be 7.2 percent this budget year, growing to 8.2 percent in 2015/16 budget year.

Ethiopia’s inflation rate has surged to 64 percent in 2008 but eased to remain below 10 percent in the last two years.

Source: Reuters Africa