Country Economic Forecasts - Ethiopia
Revised assumptions regarding the impact of the Omicron variant of the coronavirus, coupled with a better-than-expected uptake of government securities, allowed for an upward adjustment to the GDP growth forecast for the 2021/22 fiscal year (FY, which commenced on July 8) from 3.7% to 4.2%. Absorption of higher Treasury issuance trimmed the risk of a sharp, forced consolidation, but high inflation, further delays to telecom sector reform, and the loss of trading benefits weigh on near-term growth prospects.
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