– Sectors’ auspicious performance shores up
The Homegrown Economic Reform has been bringing remarkable results in doubling Ethiopia’s GDP and per capita income levels within five years and adjusting the dysfunctional and imbalanced economy, Prime Minister Abiy Ahmed (PhD) said.
Addressing the queries of the MPs during the 3rd year 4th Regular Session of the House of People’s Representatives yesterday, the Premier noted that the reform has played a critical role in adjusting the macro-economic imbalance and sustaining Ethiopia’s rapid progress.
“The International Monetary Fund (IMF) testified the current government’s ability to expand Ethiopia’s GDP by two-fold from 84 billion USD to 164 billion USD within five years. The per capita income of citizens also witnessed a two-fold increment from 882 USD to 1, 549 USD in the reported period.”
According to him, the reform is also of paramount importance in keeping the performance of the economy that has been challenged by domestic and international factors. During the past five years, the reform has played a significant role in enhancing economic efficiency, boosting flow of business and investment and enhancing institutional capacities thereby propelling holistic development.
“We have been working to build the capacity of institutions, boost the execution capacity of the civil service sector with a view to transforming Ethiopia’s ‘grey’ economy to ‘green’ urbanization.”
Supported by the reform; Ethiopia has remained among the few world countries with rapid economic progress amidst pressing manmade and natural challenges.
Abiy further revealed the plan to cover 22 million hectare of land with various crops and obtain 800 million quintal yield in the current fiscal year. Similarly, Ethiopia planned to cover three million hectares of land in the summer wheat program.
Under the ‘Let Ethiopia Produce’ campaign, the country has managed to boost its industrial production volume from 47 percent to 55, though much work is needed in this sector. In addition, the industry sector has grown by 6.9 percent and the electricity, and construction sectors have shown a 12 and 7.1 percent increase in the reported period respectively.
Similarly, the manufacturing and service sectors have grown by 7 and 7.9 percent whilst the country witnessed strong expansion in the transport and communication sub-sectors. “Ethiopia managed to generate 407 billion Birr from exports last year and it is projected to hit 520 billion this year.”
Ethiopia’s thriving financial sector keeps its auspicious progress and currently about 100 firms are operating in the country which necessitates strong regulation for the furtherance of the industry, PM Abiy remarked.
It was learned that arresting the rampant inflation and stabilizing the market are among the core tasks of the government in the current fiscal year.