ADDIS ABABA — Ethiopia’s broad-based macroeconomic reforms are generating solid results, positioning the country as a rising example of disciplined and inclusive economic transformation, according to National Bank of Ethiopia Governor Mamo Mihretu.
Addressing parliament on the state of the economy, the Governor emphasized that the reform measures are not only stabilizing key macroeconomic indicators but also building momentum for long-term resilience. He noted that inflation is falling, foreign exchange reserves are improving, and the country is experiencing a significant uptick in exports and investment flows.
Governor Mamo said Ethiopia’s recent policy direction has started to yield measurable gains, particularly in controlling inflation and improving export performance. Food inflation has declined notably, dropping below 12 percent, and the government remains committed to pushing overall inflation to single digits by the end of next year.
He explained that foreign exchange earnings have increased significantly, with export revenues expected to more than double compare to pre-reform levels. The Governor attributed this performance to improved competitiveness, enhanced production capacity, and the liberalization of the foreign exchange regime.
He underscored that these achievements reflect the government’s consistent implementation of reforms designed to address structural imbalances, improve fiscal discipline, and restore confidence in the financial system. According to him, the changes have not only restored macroeconomic stability but have also revived domestic and international trust in Ethiopia’s economic direction.
Governor Mamo also cited a recent International Monetary Fund report that commended Ethiopia’s reform progress, noting that the country is exceeding expectations in several critical areas.
He said this recognition reflects growing global confidence in Ethiopia’s policy path and the credibility of its reform leadership.
He assured lawmakers that the government will sustain the momentum through prudent policy action aimed at increasing productivity, strengthening the economy’s value chain, and improving the trade environment.
In closing, the Governor expressed optimism about Ethiopia’s economic future, describing the reforms as a turning point that is reshaping the country’s trajectory and laying the foundation for a more prosperous and self-reliant economy.
BY STAFF REPORTER
THE ETHIOPIAN HERALD SUNDAY EDITION 29 JUNE 2025
