Government taking various measures to address current economic challenges: Council
Addis Ababa, May 10, 2022 (FBC) – The last nine months report presented by the Planning and Development Ministry to the National Macro Economy Council indicates that Ethiopia’s economy will 6.6 percent 6.6 percent till the end of the budget year.
The National Macro Economy has reviewed performances of the last nine months in the presence of Prime Minister Abiy Ahmed.
According to the report tabled by the Planning and Development Ministry, Ethiopia has registered a growth in the agriculture and export trade sectors.
During the last nine months, Ethiopia has earned 2.9 billion USD from export. The service sector has also generated 4.5 billion USD during the last three quarters.
The economy of the country is being affected by various challenges over the last years. The challenges inflicted by manmade and natural disasters have been huge.
The conflict in the northern part of the country has hindered the trade and business activities and caused displacements of citizens. The conflict has also caused a pressure on the diplomatic activities.
The drought situation in various parts of the country and consequent challenges such as death of cattle and hunger cost Ethiopia a lot, the reports said. The impacts caused by the Russia-Ukraine war have also been highlighted on the meeting.
Despite the domestic and external challenges, Ethiopia’s economic growth has continued on the right track, the Council indicated.
The last nine months report presented by the Planning and Development Ministry to the National Macro Economy Council indicates that Ethiopia’s economy will 6.6 percent 6.6 percent till the end of the budget year. This growth will show a slight increase compared to the previous year.
Results gained in the agriculture sector particularly in the crop production have plaid an important role for the economic growth. 613,000 ha of land has been covered by summer wheat farming, the council said, adding that over 25 million quintals of production is expected to be harvested.
Activities are underway to stimulate the industry sector that is highly impacted by the Coronavirus pandemic and the conflict in the northern part of the country, it is indicated. The foreign direct investment sector that was impacted by the conflict has thrived following measures taken by the government to mitigate the challenges.
Saving rate of banks has increased to 1.6 trillion Birr with 25pct increase compared to the previous fiscal year. The mining sector generated 453 million USD while the manufacturing sector enabled the nation to earn 378.5 million USD.
But, the inflation which has currently grown by 36.6pct has continued to be the major challenge in the economic sector, the Council said. The situation worsens for basic consumption goods are the major items affected by the inflation, it indicates.
Although various efforts have been exerted to lower the inflation rate to one digit, the desired result is not gained due to national and international pressures. The government has continued taking a wide range of measures to curb the inflation, the Council underscored.
Basic food items such as wheat flour, edible oil, sugar and child foods are allowed to be imported with Franco Valuta basis as part of the measures being taken to mitigate the inflation, the Council noted.
Various measures are being taken to increase wheat farming productivity. Economic policy reforms are underway as administrative measures are being taken, according the Council.
Council further stressed need to immediately implement reforms made in excise tax and property tax areas so as to address the imbalance between the import and export sectors.