Jump to navigation

Vol 65 No 6

Published 14th March 2024


How war sank the development plan

After the devastating human cost of the Tigray war comes its destruction of the country’s economic base

Almost six years since taking office, Ethiopia's Prime Minister Abiy Ahmed presides over an economy that falls far short of the grand ambitions set forth in the 2019 Homegrown Economic Reform Programme. Official GDP growth continues to be statistically impressive – 6% or more – albeit significantly down on the prior decade. But Abiy, finance minister Ahmed Shide and National Bank of Ethiopia (NBE) governor Mamo Mihretu have presided over higher fiscal and current account deficits, almost 30% inflation, a vastly overvalued currency, depleted foreign exchange reserves and shortages hitting businesses and a new debt crisis.

End of preview - This article contains approximately 965 words.

End of preview

Subscribers: Log in now to read the complete article.

Account Holders: Log in now and use your Account Credit to buy this article. No Credit? Top up your Account now.

If you are logged in, but still cannot access the full text of this article, email customer services or telephone us on +44(0)1638 743633.