Despite ongoing conflicts and global economic pressures, Ethiopia’s economy has surged with an impressive 8.1% growth in the fiscal year ending July 7, 2024. Minister of Planning and Development, Fitsum Assefa, shared these encouraging figures at a recent meeting, highlighting the crucial role played by the industrial sector which expanded by 9.2%.
New factories and the reopening of closed factories due to conflicts contributed to the growth, with large and medium manufacturing industries seeing a significant 10.2% increase. Agriculture, a cornerstone of the economy, also saw improvements through government reforms, boosting overall economic performance and food security.
The services sector, driven by a rebound in tourism as the world recovers from the COVID-19 pandemic, experienced a 7.7% increase. Key national companies like Ethiopian Airlines and Ethiopian Telecom significantly contributed to this growth.
Ethiopia’s Economic Resilience Amid Challenges
Amid challenges like ongoing conflict in the Amhara region, Ethiopia’s economic adaptability stands out. Minister Assefa is optimistic about future growth, projecting double-digit economic growth in the next fiscal year based on current momentum and ongoing reforms.
While inflation rates and foreign exchange shortages remain challenges, the government is working on strategies to address these issues. Ethiopia’s success story provides inspiration for other developing nations, showcasing that with the right policies and focus, significant growth is achievable even in the face of adversity.