Ethiopian gov’t and IMF disagree on GDP figures

(Strategy Page) – The government and the International Monetary Fund are at odds over projected GDP growth figures. The IMF says Ethiopia’s economy will grow by 6.5 percent in 2013. The government estimate is around ten percent. The argument is important because the government is seeking more international investment. Government critics point out that the biggest deterrent to investment is endemic government corruption. And that is quite true. Surveys indicate Ethiopia may be less corrupt than some of its neighbors (ie, Sudan and Eritrea) but the perceived level of corruption in Ethiopia is quite high, particularly in the construction industry. An international corruption survey ranked Ethiopia 113th on its list (tied with Albania). Still, Ethiopia has shown consistent economic growth since 2004 and 2005. The country’s coffee is a prized international commodity and coffee exports have increased. The government is seeking investments in its agriculture sector and food-processing.

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