Ethiopia’s GDP growth
The World Bank predicts that Ethiopia’s economy would grow at a seven percent annual growth rate over the next 3-5 years. This is lower than the Horn of Africa country’s 10.6 percent rate over the last decade. The Bank recommends boosting private investment in order for the country to attain a middle-income status by 2025. The increase in annual inflation rate to 8 percent in July from only 6.1 percent in April has also raised fears for the possibility of double-digit inflation.
”We still think growth could be robust – in the order of seven percent in the medium term would not be unexpected,” said Lars Christian Moller, the bank’s lead economist in Ethiopia, in an interview on Monday.
The World Bank estimates Ethiopia’s economy grew seven percent in the fiscal year July 8, 2012 to July 7, 2013, below the government’s 10 percent estimate. Moller said Ethiopia’s $43 billion economy would need to repeat its performance of the last decade to become a middle-income country – defined by the bank as one with a gross national income (GNI) per capita of around $1,430 – in 12 years.