Ethiopia eyes 9.2% economic growth for 2019-20

The Ethiopian government is expecting a 9.2% economic growth for the 2019-20 fiscal year that begins this month and ends in June next year, compared to 7.7% the previous year, Prime Minister Abiy Ahmed announced on July 1.

“The economy will grow by 9.2% for the coming financial year,” he said while addressing parliament. In a report published in March, rating agency Moody’s observed that growth in the country should be around 8% in the coming years thanks to huge infrastructure investments.

Moody’s said infrastructure investments were essential economy boosters in Ethiopia between 2009 and 2018 when the country’s gross domestic product rose 10% a year between the two periods.

The economy grew at 7.7 % in 2010 (2017/18) as well as at 8.6% both in 2008 (2015/16) and in 2009 (2016/17). 5 billion birr has been collected in revenue in the last 11 months, a 10% increase compared to the previous year.

More than 11 million people are currently jobless, and the figure increases by two million each year. Last year the government created jobs for about 1.4 million people, he said.

Foreign direct investment (FDI), loans and remittance increased by 20% compared to the same period last fiscal year, while the mounts deposited by all banks increasing by 22%. Loans distributed by the banks increased by 35%, he added.

Since Abiy Ahmed was appointed Prime Minister in April last year, he has succeeded in ending feud with neighboring Eritrea and easing political and social tensions.