Ethiopia widens economic lead in East Africa

Addis Ababa, December 14, 2017 (FBC) - Ethiopia continues to widen its lead as the fastest growing economy in East Africa, Kenya’s The Standard reported.

Latest economic data by the Institute of Chartered Accountants in England and Wales (ICAEW) showed Ethiopia as the region’s largest contributor to growth during the turbulent fourth quarter period of 2017.

Ethiopia recorded a massive 7.1 per cent growth in GDP over the last four months of 2017 against Kenya’s 4.6 per cent that was adjusted downwards to reflect challenges arising from a long drought and a general election.

This subsequently saw Ethiopia emerge the biggest contributor to growth in East Africa - accounting for two per cent of regional GDP growth against Kenya’s 1.7 per cent.

“Despite having experienced tough political environments, Kenya and Ethiopia posted good growth margins,” explained Mr Michael Armstrong, regional director, ICAEW Middle East, Africa and South Asia.

He added without these tough environments, the two East African countries would have seen better growth.

The report indicates Ethiopia’s output in trade and manufacturing will eventually start crowd out Kenya’s exports.

Posted by Amare Asrat