World Bank said expectation of both oil price increase in the international market and decline in local construction sector performance guided by public investment may decelerate Ethiopia’s economic growth in the coming three years.

Ethiopian government estimated Ethiopia’s economy to increase by 11.4% for 2014/15 budget year (completed this week) and predicted this double digit growth to proceed.

The service sector from the supply side and public investment from the demand side have mainly stimulated the growth.

Other factors, specially the price fall in global oil prices have also a positive impact on the economic growth, which has resulted in 1.8% reduction in the price of goods and services.

“We know in 2014, growth rate was 10.3% and it still looking remarkably positive over the next three years,” said Lars Christian Moller, Lead Economist and Program Leader at the World Bank, at the launching ceremony of this year’s economic prospect report.

Nonetheless, Lars said the double digit growth may decelerate in the coming three years.

Source: The Daily Monitor