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IMF begins assessment on Ethiopia’s economic growth for 2018

An International Monetary Fund (IMF) staff team led by Mr. Julio Escolano on Wednesday began assessment on Ethiopia’s economic growth in the year 2018.The team will conduct its assessment until September 27, 2018, according to the Ministry of Finance and Economic Cooperation of Ethiopia (MoFEC).

It will evaluate performances of the economy, fiscal policy, finance and external sectors, the Ministry said on Facebook.

At the end, the team will present a draft report on the assessment to policy makers, it was noted.

On January 12, 2018, the Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation1 with the Federal Democratic Republic of Ethiopia.  

Ethiopia has recorded annual average GDP growth of about ten percent in the last decade, driven by public investments in agriculture and infrastructure. 

The poverty rate has fallen from 44 percent in 2000 to 23.5 percent in 2015/16. In 2016/17 GDP growth was reported at 9 percent, as agriculture rebounded from severe drought conditions in 2015/16. 

Industrial activity expanded, with continued investments in infrastructure and manufacturing. The current account deficit declined in 2016/17 to 8.2 percent of GDP from 9.1 percent the previous year, reflecting lower drought-related imports and lower public sector capital goods imports.

 However, export revenues were largely unchanged despite significant volume growth, as global agricultural commodity prices remained low. Foreign direct investment (FDI) growth was 27.6 percent due to investments in the new industrial parks and privatization inflows. International reserves at end-2016/17 stood at $3.2 billion.

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