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Ethiopia is Africa's fastest-growing economy

<b>Ethiopia is Africa's fastest-growing economy</b>With growth forecast at 8.5% this year, Ethiopia’s economy is strong. But the country still has to deal with civil unrest and drought.
According to forecasts by the British Economist Intelligence Unit, the Ethiopian fiscal year 2017/18 was expected to reach 7.6 percent and real GDP growth between 7.8 and 10.0 percent for 2019 to 2023.  The IMF World Economic Outlook predicted 8.5% growth in 2018, far outstripping that of advanced economies. Comparatively, the United States growth was expected to hit 2.9% in 2018, while Europe’s predicted growth was 2.4% and Japan’s was 1.2%. Global growth was expected to tick up to 3.9% this year and next. Ethiopia’s rise has been largely driven by an increase in industrial activity, including investments in infrastructure and manufacturing. Much of the investment in Ethiopia has come from overseas. According to the IMF, foreign direct investment growth was 27.6% in 2016/17, with investments going into new industrial parks and privatization inflows. Ethiopia has been selling its state-owned businesses to outside investors like China, which has become not only Ethiopia’s biggest foreign investor but also its largest trading partner.  Ethiopia will also benefit from rising international food prices as an agricultural exporter. An expansion of the road network and the development of marketing structures make increasing exports possible. The Ethiopian government's efforts to commercialise traditional subsistence agriculture are already paying off.


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