IMF Projects 3.8pc GDP Growth


IMF Projects 3.8pc GDP Growth

The International Monetary Fund (IMF) has projected that Ethiopia's economy will grow by 3.8pc this year. The figure was published in its revised macroeconomic outlook released last week. The revision was made to factor in the impacts of the Russia-Ukraine war, which began in February this year. The report underlines that the war will set back economic recovery. In its previous projections, Ethiopia was among a few countries omitted due to "an unusually high degree of uncertainty." Various forecasts done by different institutions say the country's GDP would grow by one to eight percent. On its part, the federal government forecasts an eight percent growth this year. Last year, the IMF projected Ethiopia's GDP would grow by two percent, however, the government reported a 6.3pc growth was registered. The IMF report also projects a slightly higher 5.7pc growth for 2022.


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Parliament Nods for Cabinet Appointments

Federal legislators have approved five cabinet-level positions last week with a member of Parliament (MP) voted against and two abstentions were counted. Gedion Timotheos (PhD) leads the charge as the new minister of Foreign Affairs, filling in Taye Asqeselassie's shoes, where he stayed briefly before becoming the country's president. With law degrees from Addis Abeba and Central European universities, Gedion was previously Attorney General and Minister of Justice. Joining him in the redev...


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Abyssinia Group Eyes Expansion with IFC Funding

Abyssinia Group of Industries (AGI), a leading East African steel producer, is poised for significant expansion owing to a proposed investment from the International Finance Corporation (IFC) which is considering a financing package of up to 50 million dollars, including parallel loans in local currency. Headquartered in Kenya, AGI operates two steel plants in Ethiopia, six in Kenya, and has mining activities in Uganda. AGI currently produces 660,000 metric tons of steel annually and employs...


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Fitch Acknowledges Easing Financial Pressures, Enhanced Macroeconomic Stability

Fitch Ratings has upgraded Ethiopia's Long-Term Local-Currency Issuer Default Rating (LTLC IDR) to 'CCC+' from 'CCC-', citing easing financing pressures, improved macroeconomic stability, and increased confidence that local-currency obligations will not be part of the ongoing debt restructuring. This positive development comes as the government implements key reforms and secures renewed concessional external financing. The ratings agency has taken note of the introduction of a market-based ex...


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