Ethiopia-Growth Ethiopia Projects Eight Percent Growth for Fiscal 1998/99
By Ghion Hagos, PANA Staff Correspondent, Oct 27, 1998
ADDIS ABABA, Ethiopia (PANA, 10/27/98)
- Ethiopia expects to achieve up to 8 percent economic during the current fiscal year ending in June 1999, according to Brook Debebe, vice-minister in the ministry of trade and industry.
With indicators showing "stability and with inflation rate well below four percent" at present, the country's economic growth this current fiscal year is expected to be in the range of between seven and eight percent, he said.
Addressing the Economic Society of Ethiopia last Friday, Brook cited the liberalization of the banking sector in August that removed restrictions on hard currency transactions by state and private commerical banks, as one of the measures the government had taken to help speed up economic growth.
He also disclosed that the government will soon introduce cuts in tariffs to spur growth, but gave no indications what these entail.
Brook stated that Ethiopia's import-export trade substantially increased after the country switched over to the port of Djibouti instead of the Eritrean Red sea ports of Assab and Massawa, few months before the border dispute with Eritrea erupted in May.
Ethiopia traditionally depended on the two Eritrean Red Sea ports until Asmara introduced its own currency, the nakfa, in October 1998, five years after its people voted in a referendum for independence and a final break with Ethiopia.
This created complications in terms of payment for their two-way trade, with Asmara demanding a par value of its nakfa with the Ethiopian birr.
Addis Ababa insisted that business transactions between them should be conducted in hard currency.