(Ecofin Agency) - Ethiopia’s economy should grow to 8.5% of GDP during the 2018/2019 fiscal year, a press release published last Wednesday by the IMF indicated.

According to the release, the forecast was motivated by investors' renewed confidence in the East African country while the uncertainties related to the country’s political and economic instability are gradually fading. A situation which improved national and foreign direct investments that favor growth.

 Authorities’ strategy to transfer focus on the private sector’s development as key to economic growth while consolidating the public sector should also help boost economic growth during the period under review.

Let’s remind that Ethiopia initiated the normalization of its relations with neighboring Eritrea. It also announced that it would open its public companies to private investments to unleash the private sector’s potential.

It is also worth mentioning that during the 2017/2018 fiscal year, the country’s budget deficit dropped to 3.7% of GDP, a figure lower than the initial forecast.

Moutiou Adjibi Nourou