Ethiopia’s Economy Will Grow 8.7 % in 2021/22 FY, says Finance Minister

ADDIS ABABA – Ministry of Finance on Tuesday said Ethiopia’s economy will expand by 8.7 percent during next fiscal year as it continues to recover from the impact of the Covid-19 pandemic.

The growth rate is identical to the projection made by the International Monetary Fund in February, saying the economy would rebound in line with global recovery.

While addressing parliamentarians on Tuesday, Finance Minister Ahmed Shide said Ethiopian economy has been facing several COVID-19 induced challenges.

The minister also said inflation, shortages of foreign currency as well as other man made and natural disasters have been affecting the economy in the concluding 2020/21 fiscal year.

Despite all the challenges, the economy has managed to grow by 6.1 percent and per capita income has reached 10,080 birr, the minister said.

Based on the existing indicators, he added the nation’s economy is also expected to register better performance in the upcoming fiscal year.

The overall economic growth is also projected to be 8.7 percent and inflation is expected to fall to single digit, Ahmed said.

Ahmed attended Tuesday’s parliamentary regular session to make the budget speech that proposed the government’s spending for the next 2021/22 fiscal year. The 561.7 billion Birr budget has an increase of 18 percent compared to the previous budget year.

The necessary monitoring system will be implemented with a view to ensuring the proper spending of government’s expenditure for social and economic developments, Ahmed assured the parliamentarians.

After deliberation of the budget draft, the House referred it to the Revenue Budget and Finance Affairs Standing Committee for further scrutiny.