Service exports increase by 14% this year – Premier

Addis Ababa, July 6, 2023 (FBC) – Although commodities exports have decreased by 11% in comparison to last year, the country has seen a 14% increase in service exports; 4.8% increase in remittance and 10.5% increase in FDI earnings, said Prime Minister Abiy Ahmed (PhD).

The gap between exports and imports has narrowed this year, the Prime Minister underscored.

PM Abiy mentioned that 21 billion birr was subsidized for purchase of fertilizer purchase and 77 billion birr subsidy for fuel to relieve the impact of inflation on citizens with lower income in the country.

He stated that different efforts were made to prevent the rate of inflation not more than 30% in total. “Although this year’s overall inflation reached 37%, we have managed to reduce to 30% and we will work to further decrease it.”

The Premier underscored that inflation is an international chronic challenge. He said he expects inflation could improve next year in Ethiopia, owing to different reform being undertaken by the government. Ethiopia’s next fiscal year budget was prepared in view of averting the impact of inflation.

15 million hectares of land will be covered with crops this season, Prime Minister Abiy Ahmed confirmed.

Regarding the country’s debt, he stressed that at the time of the transition, Ethiopia’s debt stood at 59%, but now it has been significantly reduced to 38%. “Despite the challenges encountered, we have been treating debt we inherited & will further work to reduce it to below 30% in the next 3 years.”