Ethiopia Growth Estimated at 7.3%

The economy of Ethiopia is expected to continue growing in the coming two years amid global and internal challenges, a report has stated. The World Economic Situation and Prospects 2018 launched on Tuesday in Addis Ababa projected that economic growth in Ethiopia is expected to increase to 7.3% and 7.5% in 2018 and 2019 respectively. AllAfrica reported. Fiscal stimulus, foreign investment in infrastructure and manufacturing, diversification of the economy and strong internal demand will continue to support the growth. In 2017, the Ethiopian economy showed strong resilience amid continued weak global prices for Ethiopia’s key exports, and the re-emergence of drought in some parts of the country. According to the report, Ethiopia’s economy leads growth in East Africa, supported by infrastructure investment and improving business environment. Strong private consumption, increase in investments and government expenditure on infrastructure are the main drivers of the Ethiopian economic performance. In terms of structure, the economy is still dominated by the service sector followed by agriculture; the latter is shrinking while the industrial sector is expanding.