ADDIS ABABA – The Executive Committee of the Front concluded the meeting it started Monday after reviewing in-depth the economic performance registered over the past years, Fana Broadcasting Corporate (FBC) reported referring to a statement issued by Office of the Front.
A statement issued by Office of the Front yesterday indicated that the country managed to post a 9.6 percent growth on average between 2011 and 2018 – agriculture grew by 5.7 percent, manufacturing by 19.1 percent and the service sector by 10.3 percent. During the first three years of the second Growth and Transformational Period (2016-2018), the economy grew by 8.6 percent, missing the set target of achieving a 10.1 percent growth, the statement noted.
Foreign and local investment flows have also declined due to instability during the past years. The country also missed the target of limiting inflation to a single digit between 2011 and 2018, the Committee said, adding the instability, coupled with shortage of foreign currency, pushed inflation to increase to 13.1 percent now.
The country’s reliance on development financing model and poor management of public enterprises’ projects have plunged the economy into problem. After reviewing the economic challenges facing the country and the good opportunities that the reform initiatives have brought about, the Committee put directions for the future.
Accordingly, in order to relieve the country’s debt burden, public enterprises were temporarily banned from accessing loans from financiers and loans that have short periods of maturity have been suspended, the statement noted. The Committee evaluated the reforms undertaken over the past 12 months as encouraging in creating favorable ground to respond to grievances of the people, build Ethiopia’s mage, and engage Ethiopian Diaspora in development and political activities of their country of origin.
The reform measures also allowed creating fertile ground for Civil Society Organizations (CSO), improvement of tax system, to limit government’s debt to GDP at three percent and create employment opportunities, the Committee state. The Committee said expediting economic reform to sustainably register economic growth, improving the fiscal economy and boosting export trade as well as modernizing the tax system and preventing contraband trade will be government’s priority areas.
Improving the productivity of the agricultural and livestock sectors, ensuring self-sufficiency in wheat, malted barley, edible oil, and raw materials will be government’s center of attention. Attention will also be given to the mining, manufacturing, and tourism sectors, the statement indicated.
The government will also take measures to put in place a system of accountability, establish a platform that ensure the equal participation of actors in the economy and encourage foreign direct investment (FDI) inflows, it added.
The Ethiopian Herald, May 8/2019
BY TAMERU REGASA
