World Bank says Ethiopia’s economy to grow 10.5% in the next fiscal year

Addis Ababa, 27 May 2015 (WIC) – The World Bank said Ethiopia’s economy was expected to grow by 9.5% this fiscal year ending in June before accelerating to 10.5% for 2015/16, adding that it expected inflation to remain in single digits during this period, MoFA reported.

Lars Christian Moller, the World Bank’s lead economist and program leader for Ethiopia, said on Friday (May 22) 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”, he said, “It gives additional disposable income to consumers.” Mr. Moller, in an interview with Reuters, said the service and

agriculture sectors were likely to drive growth, along with the booming construction sector.

He said growth had eased slightly in 2014/15 due to slightly disappointing rains.

Annual inflation is likely to remain in single digits, in line with the government target, he said, averaging 7.2% this fiscal year, rising to 8.2 percent in the next fiscal year.