IMF Staff Country Reports

The Federal Democratic Republic of Ethiopia’s 2005 Article IV Consultation reports that domestic credit growth has accelerated, driven by strong demand from the government, public enterprises, and the private sector. High import content, particularly from public infrastructure investments, together with higher oil imports, has translated into widening trade and current account deficits, and emerging pressures on international reserves. Inflation pressures are rising, driven by both demand pressures and higher import costs. The real effective exchange rate has appreciated moderately.