The International Monetary Fund (IMF) has predicted a 7.2 percent economic growth for Ethiopia in the year 2020. The government had previously forecasted a 7.4 percent economic growth for the same period.
On the sidelines of the 32nd ordinary summit of the African Union (AU), the government of Somalia has askedthe international community to cancelits USD 4.7 billion external debt, The Reporter has learnt.
In its latest staff report released this week, dubbed “Article IV Consultation for 2018,” the International Monetary Fund (IMF) stated that Ethiopia has to restrain from accessing any Non Concessional Borrowings (NCB) for the upcoming fiscal year, respecting the agreed up on zero ceiling limit on its commercial borrowing portfolio.
While on his private first visit to Ethiopia, a prominent US economist and professor at George Mason University told local reporters that he is optimistic about Ethiopia’s economy while signaling areas that challenge the country’s future.
After shunning repeated call from the International Monetary Fund (IMF) and the World Bank Group (WBG) to limit commercial borrowing, and feeling the pressure of the accumulated external debt of Ethiopia, the Ministry of Finance and Economic Cooperation (MoFEC) has decided to strictly avoid non-concessional loans from foreign creditors for an unspecified period of time, The Reporter has learnt.
During a historic first visit to Ethiopia by a head of the International Monetary Fund (IMF), its managing director, Christine Lagarde, stressed that there was no harm in letting the private sector operate in the economy.
Projects a nine percent GDP growth
Unlike preceding Article IV consultation reports on the Ethiopian economic affairs, the International Monetary Fund (IMF) has relaxed its judgment on how the government of Ethiopia is managing the economy.
The upcoming IMF and World Bank annual meetings offer a critical opportunity to start a serious discussion on how to arrest the lose-lose dynamics that have been gaining traction in the global economy.