Ethiopia forecasts economic growth will accelerate to 10.8% for the fiscal year ending in July underpinned by its reforms, from 9% in the previous year, according to the National Bank of Ethiopia. “The proper implementation of the recently launched Home Grown Economic Reform Program is expected to contribute toward developing a modern, vibrant, competitive and sound financial system,” according to the NBE annual report.
Economic reforms by Prime Minister Abiy Ahmed’s government have renewed interest from investors and attracted billions of dollars in financial support from lenders such as the International Monetary Fund and the World Bank.
Abiy, last year’s Nobel laureate, has opened up Ethiopia’s once tightly controlled political and economic space since taking power in April 2018. Africa’s second-most populous nation is liberalizing state-owned telecommunications, sugar and energy companies.
Ethiopia’s current-account deficit narrowed to $4.5 billion in 2018-19 from $5.3 billion a year earlier, the central bank said. Exports were $2.77 billion, compared to $15.1 billion of imports in the same period.