Ethiopian Economy 10 per cent growth predicted

(April 20, 2007)

Prime Minister Meles Zenawi has announced that the Ethiopian economy is likely to show a 10.1 per cent growth this year, continuing the successive economic growth of the last four years. The IMF has confirmed Ethiopia's economic growth while predicting that it would show a 9.5 per cent growth this year. PM Meles said a more accurate figure regarding this year's economic growth would be announced in September. Ethiopia’s economic growth over the last four years was more than double that of the average African country.
 
Extensive discussions were held between executives of the government and the IMF and consensus had been reached that close follow-up and corrective measures should be taken if necessary to further encourage economic growth. The prime minister said that the government and the IMF acknowledge that there has been a rise in the cost of living. Both sides have also reached consensus on the root causes of the problems related to the rise. As the farming community has secured fairer prices for its products over the last three years, it was now choosing not to make its grain available all at once. “As farmers have better access to market information now, they know when to sell their grain”, the prime minister said, which has contributed to the rise in grain prices. He said corrective measures, aimed at addressing the problem of the rise in food prices faced by urban people, had been put in place and were supported by the IMF. The government has also established a plan which will help urban dwellers benefit from development achievements.

Concerning the millennium, he said that tens of thousands of diaspora Ethiopians and foreigners are expected to come to Ethiopia for the celebration of the Ethiopian New Millennium and warned that there is likely to be a shortage of hotels in Addis Ababa.ENDS