Casablanca, Morocco (ADV) – Ethiopia is expected to record economic growth of 8.5 percent for the 2018/2019 fiscal year, a statement from the International Monetary Fund (IMF) released on Wednesday.
According to the document, these forecasts were motivated by a resumption of investor confidence in the economy of the East African country as uncertainties related to the economic and political stability of the country gradually fade. This has led to an improvement in domestic and foreign direct investment, which is conducive to growth.
According to the latest IMF World Economic Outlook, #Ethiopia has overtaken #Ghana as the fastest growing economy in #Africa in 2018. Ethiopia's economy is forecast to grow by 8.5%, while the rest of the region by 3.4%.
— Ethiopian Embassy UK 🇪🇹🇬🇧 (@EthioEmbassyUK) 18 avril 2018
“The authorities’ strategy to transfer the driver of economic activity to the development of the private sector while the public sector consolidates”, should also allow a further rise in the country’s economic growth for the current fiscal year.
As the country began to normalize its relations with the Eritrean neighbor, the government also announced that it would open the country’s state-owned enterprises to private investment in order to “unlock the potential of the private sector”.
Note that for the previous fiscal year, the budget deficit was reduced to 3.7% of GDP, a figure lower than forecast for the previous period.
© Bur-csa – S.E – African Daily Voice (ADV)