2merkato

Executive Board of the International Monetary Fund (IMF) approved $411 million in emergency assistance to Ethiopia on Thursday, to help combat the coronavirus pandemic.

The International Monetary Fund advised the Ethiopian government to to make more credit available to private businesses to boost employment and build on its economic gains.

While the country's government-led development model has improved lives and expanded the economy, public enterprises that are involved in building more houses, dams and factories are draining banks of loans, Ethiopia Representative Jan Mikkelsen told reporters in Addis Ababa.

Ethiopia’s recent macroeconomic performance continues to be strong, with robust economic growth supported by higher agricultural production, and large public sector and foreign direct investments. Inflation remains contained in single digits and the fiscal stance at the general government level is cautious, although public enterprises continue to provide an expansionary impulse.

On September 18, 2013, the Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation with the Federal Democratic Republic of Ethiopia. Recent macroeconomic developments are encouraging, with a significant deceleration in inflation and continued robust economic growth.

Despite significant decline in coffee prices and supply bottlenecks, growth remains robust, supported by better agriculture output and construction and other services activities. Inflation declined from the peak of 40 percent in July 2011 to around 7 percent in June 2013. This has significantly eased the extent to which real interest rates were negative. Pressures resulting in foreign exchange shortages in the wake of the passing away of Prime Minister Meles have eased.

Press Release No. 15/445
September 30, 2015
On September 21, 2015, the Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation1 with Ethiopia.