Ethiopia’s nominal GDP for the current year is expected to reach 906 billion birr in the current year based on projections of 
10% real GDP growth and 16% deflator according to the mid-year macroeconomic review undertaken by Access Capital.
The potential for growth in the period is positive with a normal and above normal rainfall recorded by the Ethiopian Meteorological Agency for most crop growing parts of the country during the main rainy season noted the report.
Continued investment in large scale infrastructure and strong Foreign Direct Investment flow into the country in addition to by and large optimistic activities in the service sector all contribute to economic expansion it said.
All four conditions for mid-term growth established in the Access Capital macroeconomic handbook, agricultural transformation, public investments, consumer goods and emerging export industries are all continuing to drive in their respective arenas with a potential even stronger momentum then anticipated six months ago explained the report.The rate of inflation is falling markedly reaching 21% in June on a year-on-year basis which is a significant decrease from the 41% high recorded last August according to the Access report. Inflation is still 34% on average for the year but the rate seems to have peaked and is declining for the third consecutive month it said.
The aggregate size of the economy, or nominal GDP, has reached 710 billion birr reflecting an actual GDP base of 511 billion birr for the 2010-11 fiscal year enhanced by real GDP growth of 11.1% and estimated GDP deflator of 25% in the just ended financial year.
Source: The Reporter
