A prominent Ethiopian economist Professor Alemayehu Geda (PhD) has predicted a -2.7% GDP growth in 2021.
This is a complete different story from Ethiopian government projection of 8.5% GDP growth in 2021.
The economist was sharing his findings during a meeting organized by Good Governance Africa (a new Civil Society Forum). According to the economist, the government projections is “completely unrealistic.”
The economist asked the Ethiopian government to mind their expenditure in order to avert the growing social economic shock.
As a result of 143 billion Birr deficit, 23% inflation rate and a $2 billion debt servicing by Ethiopia may lead to an economic shock.
Dr. Eyob Tekalign (PhD) state Minister of Finance said that the Ethiopian government has adopted an expansionary fiscal policy focusing on health and social problems facing Ethiopia. However, Prof. Alemayehu Geda is recommending a policy response which will lead to revenue expansion.
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