The Ethiopian economy is projected to grow by 6.1 percent in 2023, after expanding by 6.1 percent in 2022 and 6.4 percent in 2021/22, according to the projections of the International Monetary Fund’s (IMF) World Economic Outlook report.
The report attributes Ethiopia’s robust growth to the recovery of the agricultural sector, public infrastructure investment, and the implementation of reforms to improve the business environment and governance.
However, the report also warns that Ethiopia faces significant downside risks, such as conflicts, social unrest, high inflation, external imbalances, and debt vulnerabilities. The report recommends that Ethiopia pursue sound macroeconomic policies, mobilize domestic revenue, enhance debt management and transparency, and seek additional external financing on concessional terms to support its development objectives.
The report also highlights the need for Ethiopia to address the humanitarian crisis and restore peace and security in the affected areas, as well as to advance the national dialogue and reconciliation process.
