The Ethiopian economy is expected to sustain an 11% growth in the current fiscal year according to Prime Minister Hailemariam Desalegn speaking to the Parliament yesterday.
The economy has grown at an average rate of 11% in the last few years and the government expects to maintain the growth rate in the current financial year said Hailemariam.
It is to be remembered that the International Monetary Fund revised its forecast of the growth rate of the Ethiopian economy from 5.5% to 7% last June. The IMF raised its growth forecast due to the slowing rates of inflation.
The government has been able to reduce inflation by subsiding basic staples including oil and wheat said the Premier. Plans underway to lower inflation to single digits by the end of the fiscal year through raising agricultural productivity, saving and subsides he said.Tight monetary and fiscal policies including the suspension funding of the national budget from the central bank and sales of foreign currency have played an important role in lowering the rates of inflation noted the IMF.
The IMF had warned the Ethiopian government to ease monetary restrictions contributing to inflation.
Increasing agricultural exports including the number one national export coffee have all contributed to strengthening the Ethiopian economy.
Source: Reuters
Source: Reuters
