Ethiopia’s economy is forecast to grow by 6.6 percent this fiscal year which will end on July 7, 2022, the Planning and Development Ministry has said.
The ministry on Wednesday released details of the National Macro Economic Council of Ethiopia’s performance evaluation for the past nine months which projected growth.
The Minister for Planning and Development, Fisum Assefa, said that the economy was negatively impacted by the war in its restive northern region, the coronavirus pandemic, and the drought affecting some parts of the country.
The ministry also claimed that the conflict between Russia and Ukraine, which started in February this year has left a negative impact on the Ethiopian economy.
With the rise in the price of wheat, the prime minister vowed to export the commodity as of next year.
Meanwhile the price of cooking oil has increased by 65 percent in the months of February and April thereby contributing to worsening price inflation, according to the Ministry.
On the other hand, it was indicated that Ethiopia earned over $2.9 million from its export trade during the same period and another $4.5 billion from the service sector.
In related news, the Ethiopian government is considering ending subsidies on fuel oil in the local market – a move which many fear could unleash disastrous consequences for consumers.