3 days ago
Ethiopia forecasts faster growth next fiscal year
Ethiopia's economy will grow slightly faster in the fiscal year that starts next month, while its budget deficit will increase marginally, its finance minister said on Tuesday.
The East African nation, which is restructuring its external debt, is implementing far-reaching economic reforms backed by an International Monetary Fund (IMF) loan programme.
Finance minister Ahmed Shide told parliament that the government is forecasting economic growth of 8.9% in the fiscal year that runs from July 8 2025 to July 7 2026, up from an estimated 8.4% in the current fiscal year.
A budget deficit of 2.2% of gross domestic product (GDP) is expected versus 2.1% this fiscal year, while overall spending will be about 1.9-trillion birr (R248.16bn) next year, he said.
Ethiopia's export revenue over the past 11 months of this fiscal year stood at $7.2bn (R127.62bn), Ahmed said, up 118.2% from the previous financial year. Prime Minister Abiy Ahmed has told domestic media outlets in recent days that the country's coffee and gold exports have surged.
