The Federal Democratic Republic of Ethiopia: 2018 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for The Federal Democratic Republic of Ethiopia
December 4, 2018
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Context: In 2017/18 growth slowed due to political uncertainty and appropriately restrictive macroeconomic policies. The external current account deficit narrowed to 6.4 percent of GDP reflecting public-sector fiscal consolidation and a tight monetary policy stance. Reserves were thin and foreign exchange shortages persisted. Prime Minister (PM) Abiy Ahmed took office in April 2018, catalyzing a drive for reforms, including towards economic opening. Outlook: Output growth is expected to accelerate to 8.5 percent in 2018/19 as political uncertainty abates and financial inflows temporarily ease external constraints. The Debt Sustainability Analysis (DSA) continues to assess Ethiopia at high risk of debt distress. Reforms announced by the authorities—including privatizations and opening key sectors to competition and private investment—pose a substantial upside growth potential.
Subject: External debt, Foreign exchange, Monetary base, Money, Public debt, Revenue administration
Keywords: Africa, authority, CR, e-government procurement, East Africa, economic reform, FDI inflow, Global, governance structure, government securities market, IMF staff, ISCR, Monetary base, NBE bill, private sector, public-sector credit policy, real gross domestic product, Sub-Saharan Africa
Pages:
83
Volume:
2018
DOI:
Issue:
354
Series:
Country Report No. 2018/354
Stock No:
1ETHEA2018002
ISBN:
9781484388600
ISSN:
1934-7685
