Ethiopia’s economy predicted to grow at 6.6% despite challenges

The National Macroeconomic Council, which is led by Prime Minister Abiy Ahmed (PhD), said Tuesday that Ethiopia’s economy will grow at a rate of 6.6% in this Ethiopian fiscal year despite the challenges the economy has been facing.

Members of the Council has discussed on the nine months macroeconomic performance of the country on Tuesday.

“The war in north Ethiopia teetered business activities and it has significant economic impacts,” a statement issued by the council reads.

“Ethiopia lost a lot due to the drought, which occurred in parts of the country,” said the statement, adding, people were starved and animals killed by the drought.

Meanwhile, the nine months macroeconomic report presented to the members of the Council by Fitsum Assefa (PhD), Minister of Planning and Development, indicated that Russia-Ukraine war and other global trends have also posed a challenge in the macroeconomic performance of Ethiopia.

The Russia-Ukraine war and the drought in Ethiopia have aggravated the inflation, Fitsum said. The price of fertilizer before a year was $250, and this year it soared to $1,300 mainly due to the war, she added.

Despite the predicaments, the report showed that 336 million quintal of production was harvested from the agricultural sector, which is considered as the backbone of nation’s economy.

During the Bega (dry/hot) season 25 million quintal of wheat has been harvested through irrigation development scheme, according to Fitsum.

Ethiopia has garnered over $2.9 billion in export earnings, and $4.5 billion has been secured from the service sector.