Ethiopia's GDP Growth Projected To Be Seven Percent In 2002

Source: Walta Information System

http://www.waltainfo.com/EnNews/2002/Jul/16Jul02/jul16e6.htm

Addis Ababa, July 16, 2002 (WIC)- The United Nations Economic Commission for Africa (ECA) predicted that the Ethiopian economy will register a seven percent GDP growth this year as it released the annual Economic report on AFrica for the year 2002 today.

Speaking at a press conference at the UN conference Center, Director of Economic and Social Policy Division at ECA, Patrick Asea said a number of positive developments in 2000/01 which include among others peace with Eritrea and the decline in defense spending and cessation of hostilities that paved the way for resumption of external assistance were positive prospects for better economic growth in 2001/02.

He added that Ethiopia's economic performance has moved in a fair group because of the preparation of full poverty Reduction Strategy Paper (PRSP) provides a good opportunity to focus on alleviating poverty, addressing the spread of HIV/AIDS and sound economic management.

Ethiopia's economic growth for the year 200/01 had been predicted at GDP 8.4 per cent, he said.

Asea however said that Ethiopia should increase its spending on health and education to fully enjoy debt relief under Highly Indebted Poor countries (HIPC) initiative.

The report indicated that although Ethiopia's recent economic performance has been quite encouraging, poverty still remains deep and severe with nearly half of Ethiopians living below the poverty line.

According to Patrick Asea Africa was the only region to accelerate its growth in a turbulent year of 2001 that synchronized slow down of all major economies.

He added that Africa's average annual GDP growth for the year was 4.3 per cent with sharp disparities among countries.

He said "the medium term outlook for Africa is cautiously optimistic. Positive developments (for Africa's optimism) include the launching of Doha Development Round, Enhanced market access to initiatives in the US Africa Growth and Opportunity Act AGOA), the European Union's "Every Thing But Arms" initiatives and the New partnership for African Development (NePAD), among others.

South Africa, the continent's largest economy was rated at the top of 23 countries assessed by the report as having good polices for investment and economic growth.

UNECA economic report on Africa is the annual flagship publication of ECA that provides a unique perspective on the continent's socio-economic development progress.