Ethiopia's Minister of Planning and Development, Dr. Fitsum Assefa, stated that the nation's key economic indicators have shown strong positive performance over the past nine months. Speaking at a review attended by Prime Minister Dr. Abiy Ahmed on Saturday, Dr. Fitsum highlighted significant progress in areas like economic growth and a welcome decrease in the country's debt burden.
Providing details from the third quarter 100-day performance of the 2017 fiscal year, the minister explained the ongoing impact of the second homegrown economic reform. This initiative, she stated, is strategically focused on achieving macroeconomic stability, boosting productivity and competitiveness across various sectors, fostering a more attractive investment and business environment, and strengthening the government's ability to implement its plans.
Dr. Fitsum reported that all four pillars of this reform have seen encouraging success during the nine-month period, making the projected 8.4 percent economic growth target appear well within reach. She further noted an encouraging trend in the nation's financial health, with the proportion of both investment and savings relative to the overall Gross Domestic Product (GDP) showing improvement.
Specifically, regarding GDP, investment has climbed from 20.5 percent during the corresponding period in the previous fiscal year to an impressive 23.2 percent, the minister pointed out. She also highlighted the positive performance in domestic revenue collection and the successful reduction of the external debt burden to 13.7 percent of the overall GDP.
ENA quoted the minister as saying that the comprehensive macroeconomic reform has not only accelerated the pace of economic expansion but has also facilitated a substantial USD 3.5 billion in debt restructuring. Furthermore, she indicated improved performance in the trade of both goods and services.
As a direct result of the reform efforts, Dr. Fitsum elaborated, previously indebted government development enterprises are now operating profitably under the umbrella of the Ethiopian Investment Holdings. In a significant move towards price stability, she also emphasized that the government has refrained from taking any loans from the National Bank over the past nine months.
Looking at citizen welfare, the minister assured that the government remains committed to cushioning the impact of the cost of living through strengthened subsidies for crucial safety net programs, essential goods, fuel, and other strategically important commodities. As a concrete example, she cited a substantial 62 billion Birr allocated for fertilizer subsidies alone as an example, she mentioned that 62 billion Birr has been subsidized for fertilizer alone.
In her report, the Minister also mentioned that effective work has been done in creating job opportunities domestically, abroad, and through remote work during the nine months of the budget year.