Ethiopia’s economy is forecast to expand 8.5 percent in the July 2018-June 2019 period, from 7.5 percent in the previous fiscal year, the International Monetary Fund said on Wednesday. In its first assessment since Prime Minister Abiy Ahmed took office in April, the IMF said Ethiopia was benefiting from easing uncertainty and improved domestic and foreign investment. Eritrea and Ethiopia have also restored diplomatic ties, reopened borders and started flights. “The authorities’ strategy to shift the engine of economic activity to private sector development while the public sector consolidates is appropriate to maintain strong growth.”Ethiopia has said it will open its logistics sector to foreign investors but cap their participation. “At the same time, measures to reduce public sector borrowing and bring inflation back to target need to be intensified, as external imbalances and indebtedness remain a source of macroeconomic risk,” Escolano said.

Source: Ethiopian News September 27, 2018 14:15 UTC