pm and his cabinet held the review meeting on monday

Ethiopia’s Economy Project to Grow by 7.5% this year

ADDIS ABABA – Ethiopia’s economy will show a 7.5 percent growth in the current 2022/23 fiscal year, the Ministry of Planning and Development (MoPD) projected on Monday.

The forecast comes a week after the African Development Bank said Ethiopia and four other African nations would reclaim their position among the world’s 10 fastest-growing economies in 2023-24.

Development Minister Fitsum Asefa said the economy will build on the 6.5% growth last recorded last year and will expand by 7.5% this year.

Fitsum made the forecast while presenting the half-year macroeconomic performance report to the Council of Ministers meeting which began today in the presence of Prime Minister Abiy Ahmed.

The achievements shown in the major macroeconomic indicators put the country on track to attain the projected growth, as per the report.

In the last two quarters, Fitsum said agriculture, the mainstay of Ethiopia’s economy, has recorded a 6.7% growth.

Significant development has been registered in the industry sector, according to MoPD.

Fitsum said the sector which went through major challenges caused by internal problems and external pressures for two years, has emerged from a slump and recorded an 8.2% growth.

Nearly 1.9 billion US Dollars worth of foreign direct investments (FDIs) flew into the country in the last six months, up by 16% from a similar period last year.

The FDI flow will further reinvigorate the industry sector, said Fitsum, whose report says it has made a contribution to the 1.5 million new jobs that the economy created in the first half of the 2022/23FY.

Despite the positive developments, the Minister reported a slight drop in export trade performance.

Ethiopia secured a little more than 1.8 billion US Dollars in six-month export trade, achieving 77% of the target set by authorities.

Fluctuating prices of commodities at the global market, illegal trade and contrabands, and various bottlenecks in the nation’s trading system have been blamed for the drop in export revenues.

Despite a drop in export earnings, the half-year also saw the government’s revenues spike by 28.9%. More than 222 billion Birr has been generated from tax and non-tax sources, reported Development Minister Fitsum.

Prime Minister Abiy and his cabinet are now evaluating the economic performance at Halala Kella – part of the ‘Dine for Ethiopia’.

PM Abiy praised the overall economic performance of the economy saying
“While we continue to be confronted with many challenges, our economy perseveres resiliently.”

“We all work collaboratively across all sections of the population to continue strengthening it,” Abiy said in a tweet.