Ethiopia: World Bank Foresees Rising Public Debt Moderates Ethiopia Growth Ahead

One of the many construction sites in Addis Ababa reflecting the capital city's rapid economic growth and population rise.

The World Bank, in its latest Global Economic Prospects, has forecasted Ethiopia's growth in GDP at 8.2pc in 2018, further to shrink to 7.8pc the following year. However, the projection for Ethiopia is above the average 5.4pc for low-income countries, making it remain the fastest growing economy in the East Africa region.

The Bank has attributed challenges to Ethiopia's economic prospects to high public debt, while large external imbalances and rising fiscal deficits to haunt Mali, Rwanda and Zimbabwe.

"Although government debt increased less in Benin and Ethiopia, it still rose above the median debt ratio, as they continued to borrow to finance ambitious investement plans," says the report released yesterday.

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