BUSINESS & ECONOMY INDICATORS TRENDS FORTUNE+ VIDEO TENDERS JOBS SPONSORED CONTENTS FORTUNE AUDIO TRADE AFRICA new

COVID-19 UPDATES: All the stories and commentaries on Coronavirus, in one place


IMF Downgrades Ethiopia Growth Prospects to 6.2pc

January 28 , 2020

The International Monetary Fund (IMF) has downgraded Ethiopia`s prospect for economic growth in the current year by one percentage point.

The International Monetary Fund (IMF) has downgraded Ethiopia`s prospect for economic growth in the current year by one percentage point, from the 7.2pc it had projected earlier. 

Concluding a report today, January 28, the IMF attributed the possible growth decline to a macroeconomic policy Prime Minister Abiy Ahmed`s administration has introduced hoping to deal with the structural imbalance in the economy. Ethiopia is dealing with external and domestic debt vulnerabilities, double-digit inflation and severe foreign exchange crunch.


Through the recently introduced economic reform program, the administration dubbed as “homegrown," the government pursues a policy of restraint in public expenditure and tighter monetary policies. These measures, the IMF hopes, will boost forex reserve to four billion dollars at the end of the fiscal year, enough to cover imports for two months. 

However, directors at the IMF push the administration for further bold measures such as market-clearing exchange rate regime and the phasing out of the central bank`s financing of the federal government. They have also insisted for the state-owned Commercial Bank of Ethiopia (CBE) to go through asset quality review, and the Development Bank of Ethiopia (DBE) to deal with its high non-performing loans and develop sustainable financing model.

Put your comments here


Share This Post
Linkedin
Google+


Most read

Latest News

Editor's pick

Commentaries

Fruitful Offer of New Arbitration for Business Community

When one considers commercial disputes that arise from breaches of contractual obliga...

African Blue Economy Can Ride the AfCTA Wave

Africa is a complex continent. It is an eclectic mix of authoritarian regimes — whe...

Fineline

Leaders of the National . . .

Leaders of the National Election Board are in a charm offensive mood, of a sort. Last week, they organised a rare tour for members of the me...

When the country’s most. . .

When the country’s most senior diplomats and envoys return back to their posts after two-week debriefings, they leave behind a point or tw...

Editorial

Spiritual Leaders Can Be Exception. If They Will It

April 17 , 2021

There is not a facet of life in Ethiopia today that is not convulsed by the moral cri...

Regional Fiscal Perfidy Stems from an Indulgent Fed. Alarming!

April 10 , 2021

It is not often the case for regional states' leaders to swallow their vanity and dec...

Bailout Needs to Contend with Original Sin of Political Corruption

April 3 , 2021

As an Auditor General, he was not the most conspicous of officials in the mainstream...

At Odds with Dev't Partners, Ethiopia Could Miss Out on Improving World Economy

March 27 , 2021

In an unprecedented turn of irony, just as Ethiopia began an attempt to open up to th...

Gallery

2020 in Posterity

January 5 , 2021

With an election initially expected to be held in 2020, the past year was supposed to be eventful. It did not disappoint. In fact, it outpaced expectations. Much of 2020 was talked about, analysed and debated. And thanks to technology, it was caught...

TIGRAY VOTES DESPITE "NULL & VOID" THREAT

September 9 , 2020

IN-PICTURE: LAUREATE'S RECEPTION  

December 14 , 2019

PM Abiy Ahmed (PhD) at a Gala Dinner Called for the Awarding of the Félix Houphouët-Boigny Peace Prize

May 6 , 2019

Faces, Voices of Addis Abeba

April 26 , 2019

Mourning Nation, Grieving World

March 17 , 2019

Sunday With Eden

Grieve Today, Work for Better Tomorrow

A good friend of mine has endured wars, natural disasters, bereavement, property los...

Everyone Needs to Answer for Ethiopia Predicaments

A few days ago, a friend told me an unnerving story – highly illustrative of Ethio...

Life Matters

The Gender 'Prank' on Society

About a week ago, in the neghbourhood known as Bole Brass, close to Bole International Airport, two young women were talking about their asp...

Don't Judge People by Their Tattoo

Do not judge a book by its cover, we say. But we still judge all the same. It is much worse when it comes to a living, breathing person. We...

In-Picture

Drop us a message

Or see contact page