Addis Ababa, November 14, 2024 (FBC) – Ethiopia’s comprehensive macroeconomic reforms, being implemented since July 2024, are demonstrating remarkable results in boosting the nation’s economic growth in a sustainable manner, Ministry of Finance said.
Ethiopia has solidified its position as the largest economy in East Africa and the third-largest in Sub-Saharan Africa.
The country has been implementing a comprehensive macroeconomic reform since July this year with the objective of enabling the country achieve high and stable economic growth, maintain single-digit inflation, and build a globally competitive economic system.
The reform measures target a range of issues, including foreign exchange distortions, financial sector strengthening, inflation control, tax revenue mobilization, and improving the business climate.
Over the past three months of the implementation of the reform a number of successes have been registered across various sectors.
State Minister of Finance, Eyob Tekalign, stated the positive impact of the reforms on various economic indicators. These reforms aim to enhance trade, investment, domestic production, and service delivery.
The State Minister said these reforms have led to a higher and more sustainable national economic growth, as evidenced by various indicators.
By enhancing trade, investment, domestic production, and service delivery, the government aims to propel Ethiopia’s overall economic development.
Ethiopia has been implementing a comprehensive macroeconomic reform since July 2024 to enhance the competitiveness of the trade and investment sectors, strengthen domestic production and productivity, and improve the quality of services and these efforts aim at significantly contributing to the country’s overall economic growth.
The implementation of this reform has yielded excellent results across various economic indicators, the state minister stated, adding that the country’s macroeconomic policy reform has successfully addressed several challenges that were hindering economic growth.
This can indicate the importance of the coming quarters for building upon the progress already made in the first quarter.
Eyob highlighted the positive performance of exports, income, and remittances during the quarter as a promising indicator, he said noting the strong performance of gold exports and the encouraging trends in tantalum exports.
Stating that the coming quarters are critical periods as the works started in the first quarter will gain ground; the state minister affirmed that there would be no reason to make Ethiopia’s foreign exchange and general market unstable.
According to the state minister, the government is committed to taking all the necessary measures to achieve the objectives of macroeconomic reform.
“The positive developments in the agriculture, tourism, mining, and digital sectors signal the early successes of the reform,” he added.
The agricultural sector has experienced significant production growth, while the tourism industry has attracted numerous international conferences with rapid growth and expansion of the digital sector, as per ENA.
To mitigate the impact of the reform on lower-income segments of society, the government has implemented a budget subsidy system, the state minister revealed.
Furthermore, commodity prices have stabilized in recent months, he added.
Ethiopia’s economy is projected to achieve a remarkable 8.4 percent growth during the current fiscal year.