Ethiopia’s microeconomic performance in recently ended 2021/22 fiscal has been remarkable, said Prime Minister Abiy Ahmed.
The government’s Macroeconomic Committee met on Wednesday in the presence of Prime Minister Abiy after his unusually long absence from the public eye.
The committee, involving PM’s cabinet and economic advisors, discussed the macroeconomic performance of the economy of the Fiscal Year that ended on July 7, and the plan for the new 2022/23FY.
The committee was content with what most of the macroeconomic indicators revealed about last year’s performance.
“Our macroeconomic committee meeting today has confirmed the remarkable export performance this past year — better FDI flow, decrease in inflation in the past two months, optimal green legacy, volunteer activities, remittance, and automation performance,” Abiy said.
Ethiopia’s export revenue jumped by 3.81 percent to $4.12 billion while remittances inflow surpassed the annual target and reached $4.2 billion last year.
“It is key we build and expand on this year’s achievements,” Prime Minister Abiy said.
Presenting the annual report, Planning and Development Minister Fitsum Assefa said last year’s overall better performance helped the economy to create at least 2.3 million new jobs.
However, the Minister stated that inflation has continued to be a major challenge for the macro economy.
Authorities say inflation has been decelerating since June, during which it dropped to 34% from 37.2% in May.
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Still, consumer-price growth remains high with the Covid pandemic and Russia-Ukraine conflict-related challenges adding risks to price hikes in fuel, edible oil, and fertilizer supply line.
According to the Ministry of Planning and Development, Ethiopia’s inflation problem has been building up for a long period of time mainly due to low productivity and lack of competitiveness in the market.
It’s official said the increasing investments in agriculture and the agro-processing sector, which are showing positive outcomes, could help tackle the challenge.
The government will continue to exert its efforts not only in addressing the inflation problem but also to register better economic performances in all sectors in the new fiscal year, according to Fitsum.