Ethiopia anticipates 7.5 pct economic growth in fiscal year 2022/2023: PM

Ethiopia's economy is expected to grow by 7.5 percent in the current 2022/2023 Ethiopian fiscal year ending on Friday, Ethiopian Prime Minister Abiy Ahmed said Thursday.

Responding to questions raised by members of the House of People's Representatives, the Lower House of Parliament, Ahmed said the projection is higher than the 6.1 percent the International Monetary Fund (IMF) had previously forecast.

"Ethiopia is one of the fastest economies in the world and its economy is expected to grow by 7.5 percent this year," Ahmed said.

He said the economic growth comes against the backdrop of macroeconomic challenges that have plagued the country, including inflation, as well as the conflicts in different parts of the country.

"Ethiopia is one of the few countries that are registering rapid economic growth in the world," said the prime minister, noting that the first home-grown economic reform that was introduced by the government has played a vital role in such economic performance.

Ahmed said the agriculture sector, which accounts for 33 percent of the economy, has greatly contributed to the economic performance and the country is making tremendous progress in poultry and fruit production.

He said the government has managed to reduce the inflation rate down to 30 percent during the current fiscal year from 37 percent in the last fiscal year.

According to the prime minister, Ethiopia has also managed to reduce its debt-to-gross domestic product ratio to 38 percent, noting that the East African country has been paying its external debt without any delay.

He said the gap between import and export has narrowed during the period while the country has seen a 14 percent increase in service export, a 4.8 percent increase in remittance, and a 10.5 percent increase in foreign direct investment.

The House of People's Representatives on Thursday approved 801.65 billion birrs (about 14.7 billion U.S. dollars) as the federal government budget for the next fiscal year.