By | January 7, 2020

Ethiopia Returns to Double-Digit Economic Growth; check the cost of living also

ከዚህ ሁሉ መስፈርት ያጣ ነጭ ዉሸት አድነን!! – Please find below a reality check.

By Samuel Gebre, January 7, 2020

(Bloomberg) — Ethiopia forecasts economic growth will accelerate to 10.8% for the fiscal year ending in July underpinned by its reforms, from 9% in the previous year, according to the National Bank of Ethiopia.

“The proper implementation of the recently launched Home Grown Economic Reform Program is expected to contribute toward developing a modern, vibrant, competitive and sound financial system,” according to the NBE annual report.

Economic reforms by Prime Minister Abiy Ahmed’s government have renewed interest from investors and attracted billions of dollars in financial support from lenders such as the International Monetary Fund and the World Bank.

Abiy, last year’s Nobel laureate, has opened up Ethiopia’s once tightly controlled political and economic space since taking power in April 2018. Africa’s second-most populous nation is liberalizing state-owned telecommunications, sugar and energy companies.

Ethiopia’s current-account deficit narrowed to $4.5 billion in 2018-19 from $5.3 billion a year earlier, the central bank said. Exports were $2.77 billion, compared to $15.1 billion of imports in the same period.

Reality Check:

The following is the estimated cost of living for a family in Ethiopia, an estimation on January 7, 2020:

Source: expatistan is a cost of living calculator that allows you to compare the cost of living between cities around the world.

Summary of cost of living in Ethiopia

  • Family of four estimated monthly costs: 89,341 Birr (about US$2,792)
  • Single person estimated monthly costs: 41,767 Birr  (about US$1,305)

Ethiopia has no national minimum wage. Some government institutions and public enterprises set their own minimum wages: public sector employees, the largest group of wage earners,earned a monthly minimum wage of 420 birr ($21); employees in the banking and insurance sector had a minimum monthly wage of 336 birr ($18).

Economic standing of Ethiopia in 2018

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