Ethiopia continues to exhibit economic resilience: World Bank report

Addis Ababa, April 20, 2017 (FBC) –The new Africa’s Pulse, a bi-annual analysis of the state of African economies conducted by the World Bank, reveals that Ethiopia continues to exhibit economic resilience, supported by domestic demand.

Like Ethiopia, Côte d’Ivoire, Kenya, Mali, Rwanda, Senegal, and Tanzania demonstrates economic resilience posting annual growth rates above 5.4% in 2015-2017.  These countries house nearly 27% of the region’s population and account for 13% of the region’s total GDP.

Africa’s Pulse notes that Nigeria, South Africa, and Angola, the continent’s largest economies, are also seeing a rebound from the sharp slowdown in 2016, but the recovery has been slow due to insufficient adjustment to low commodity prices and policy uncertainty.

Furthermore, several oil exporters in the Central African Economic and Monetary Community (CEMAC) are facing economic difficulties.

The continent’s aggregate growth is expected to rise to 3.2% in 2018 and 3.5% in 2019, reflecting a recovery in the largest economies, Africa’s Pulse remarks. It will remain subdued for oil exporters, while metal exporters are projected to see a moderate uptick.

GDP growth in countries whose economies depend less on extractive commodities should remain robust, underpinned by infrastructure investments, resilient services sectors, and the recovery of agricultural production. This is especially the case for Ethiopia, Senegal, and Tanzania.

The Africa’s Pulse report dedicates a special section to analyzing the region’s infrastructure performance across sectors, revealing dramatic improvements in quantity and quality of telecommunications contrasted by persistent lags in electricity generation and access.

Overall, the report calls for the urgent implementation of reforms to improve institutions that foster private sector growth, develop local capital markets, improve infrastructure, and strengthen domestic resource mobilization.

Source: World Bank

Posted by Amare Asrat