Ethiopia’s Economy To Grow 10.5%-World Bank

Ethiopia's Economy

Ethiopia’s economy is expected to grow by 9.5 percent this fiscal year ending June before accelerating to 10.5 percent in 2015/16, the World Bank said on Friday.

Lars Christian Moller, the World Bank’s lead economist and programme leader for Ethiopia, said that falling oil prices should help quicken Ethiopia’s growth in 2015/16.

“If lower oil prices are passed on to consumer in the form of lower fuel prices, it gives additional disposable income to consumers,” Moller said in the capital Addis Ababa.

The World Bank added that inflation would remain in single digits during this period.

The ruling Ethiopian People’s Revolutionary Democratic Front has touted its economic achievements before Sunday’s election.

Although no one doubts it will sweep to power again as critics say it stifles any real opposition.

There is just one opposition member of the outgoing parliament.

The Ethiopian government has targeted annual growth at about 11 per cent for the past five years.

Moller said the service and agriculture sectors are likely to drive growth, along with the booming construction sector.

In Addis Ababa, new multi-story office blocks and shopping malls have altered the city’s skyline.

He added that growth eased slightly in 2014/15 due to below par rains in the mountainous Horn of Africa nation.

Source : Leadership

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