The Ethiopian government is expecting a 9.2% economic growth for the 2019-20 fiscal year that begins this month and ends in June next year, against 7.7% the previous year, Prime Minister Abiy Ahmed (photo) announced Monday.
"The economy will grow by 9.2% for the coming financial year," he said while addressing parliament. In a report published in March, rating agency Moody’s observed that growth in the country should be around 8% in the coming years thanks to huge infrastructure investments.
Moody’s said infrastructure investments were key economy boosters in Ethiopia between 2009 and 2018 when the country’s gross domestic product rose 10% a year between the two periods.
Since Abiy Ahmed was appointed Prime Minister in April last year, he has succeeded in ending feud with neighboring Eritrea and easing political and social tensions, particularly hot in the Oromo region, by freeing political prisoners and lifting the state of emergency.
The official has also initiated an economic liberalization process that will open the capital of the largest state-owned companies, including Ethiopian Airlines, the incumbent operator Ethio Telecom and the national electricity company, to the private sector.