Following a year of strong growth in 2012 the near-term outlook for Ethiopia remains broadly positive, with growth projected to accelerate modestly to around 5.5pc in 2014, according to International Monetary Fund's (IMF) Regional Economic Outlook published last week.
Last year, the IMF said Ethiopia's economy is expected to maintain a growth rate of seven percent in 2012/2013, which was below the official estimates of 11.4pc.
The report also reveals that Africa's inflation will decline further to below six percent by end of 2014, reflecting the expectation of moderating non-oil commodity prices and maintenance of appropriate monetary policy.
The Central Statistics Agency (CSA) announced two weeks ago that Ethiopia's year-on-year inflation rate dropped to 7.6pc in March 2013, from a revised 10.9pc in February, owing to slower rise in the price of food.
But the Ethiopian government said....................is that exaggerated?? I think so
Ethiopia's economy is estimated to expand by 11.3 per cent in the 2012/13 budget year. This is according to a 9 month performance reported to the Budget and Finance Affairs Permanent Committee of the Parliament by Sofian Ahmed, Minister of Finance and Economic Development.
He explained to the committee that the performance of the economy this year in agriculture, industry, and service sectors indicates that the economy grows at a pace it did a year before.
Inflation has come down to a single digit at 6.1 per cent and this is down to the government's intervention in the market that commits to importing food commodities while it, at the same time, halt borrowing money from the treasury.
Figures say the last 9 months government revenue performance collects US$ 2.2 billion from export and 77 billion Birr from domestic sources.