Ethiopia’s economy will see a 7.5 percent growth in the current 2022/23 Ethiopian fiscal year, which began on July 8, 2022, the country’s Ministry of Planning and Development (MoPD) projected on Monday.MoPD Minister Fitsum Asefa said the economy will build on the 6.5 percent growth last recorded last year and will expand by 7.5 percent  this year.

Asefa made the forecast while presenting the half-year macroeconomic performance report to the Council of Ministers meeting which began today in the presence of Prime Minister Abiy Ahmed.

The forecast comes a week after the African Development Bank said Ethiopia and four other African nations would reclaim their position among the world’s 10 fastest-growing economies in 2023-24. 

The achievements shown in the major macroeconomic indicators put the country on track to attain the projected growth, as per the report.

In the last two quarters, Fitsum said agriculture, the mainstay of Ethiopia’s economy, has recorded a 6.7% growth.

Significant development has been registered in the industry sector, according to MoPD.

Assefa said the sector which went through major challenges caused by internal problems and external pressures for two years, has emerged from a slump and recorded an 8.2% growth.

Nearly $1.9 billion worth of foreign direct investments (FDIs) flew into the country in the last six months, up by 16% from a similar period last year.

The FDI flow will further reinvigorate the industry sector, said Fitsum, whose report says it has made a contribution to the 1.5 million new jobs that the economy created in the first half of the 2022/23FY.

Despite the positive developments, the Minister reported a slight drop in export trade performance.

Ethiopia secured a little more than $1.8 billion in six-month export trade, achieving 77% of the target set by authorities.

Fluctuating prices of commodities at the global market, illegal trade and contrabands, and various bottlenecks in the nation’s trading system have been blamed for the drop in export revenues.