Ethiopian PM Defies Bretton Woods on Growth Projections

Hailemariam Desalegn
Hailemariam Desalegn, Ethiopia’s new PM

Ethiopia on Thursday insisted that it would achieve 11 percent economic growth in 2012/2013 fiscal year despite a lower projection by the Bretton Woods institutions.

The International Monetary Fund and World Bank projected seven percent economic growth for the Horn of Africa country.

However, Prime Minister, Hailemariam Desalegn addressing the parliament said the 11 percent economic growth target was still within reach, considering that in the past seven years the country recorded double digit economic growth.

“We have been registering double digit economic growth for the past seven years. In 2012/2013, we expect our economy to grow by around 11 percent,” he insisted.

“Ethiopia is among few African countries expected to achieve the main targets of the millennium development goals. The current economic growth of the country is playing a great role for this achievement.”

Desalegn said the government was working on reducing inflation, presently pegged at 19 percent, to a single digit to sustain economic growth.

He blamed the high inflation rate on the global economic problems and the imbalance of agriculture products to the demand as well as lack of a modern trading in the country, home to more than 80 million people.

He admitted that the current inflation has an impact on the country’s economic activities.

“We are working to increase our agricultural productivity, to increase our savings and other measures to tackle the inflation,” Desalegn he said.

Both the World Bank and IMF project that Ethiopia’s economy is expected to grow by around seven percent, citing a serious problem by the current inflation.