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Ethiopia Returns to Double-Digit Economic Growth

National Bank of Ethiopia stated in an annual report, that the country forecasts economic growth will accelerate to 10.8% for the fiscal year ending in July underpinned by its reforms, from 9% in the previous year.

Passengers queue to ride Ethiopia’s first tramway on 20 September 2015, in the capital Addis Abada. The project, hailed as sub-Saharan Africa’s first modern tramway, was seen as a major step in the country’s economic development. Photo: AFP/ MULUGETA AYENE

The report noted that, “ the proper implementation of the recently launched Home Grown Economic Reform Program is expected to contribute toward developing a modern, vibrant, competitive and a sound financial system.”

Many believe that the economic reforms propagated by Prime Minister Abiy Ahmed’s government have improved interest from investors and attracted billions of dollars in financial support from lenders such as the International Monetary Fund and the World Bank.

Ethiopia’s economy is a mixed and transitional with a large public sector. The government of Ethiopia is in the process of privatizing many of the state-owned businesses and moving toward a market economy.

The Ethiopia’s once tightly controlled political and economic space, has been opened up since the Nobel laureate takes power in April 2018.

The Africa’s second-most populous nation is liberalizing state-owned telecommunications, energy and sugar companies. Ethiopia’s current-account deficit narrowed to $4.5 billion in 2018-19 from $5.3 billion a year earlier, the central bank said. Exports were $2.77 billion, compared to $15.1 billion of imports in the same period. ‪‪‬‬‬‬

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