Ethiopia's exports up 21%

Ethiopia’s exports rose sharply in the eight months through March versus the same period a year earlier, and the economy is on track to expand 10.1 pct during the 2009/10 fiscal year, the government said on Monday.

Prime Minister Meles Zenawi told parliament he hoped export earnings would reach $2.9 billion for the fiscal year ending June 30, compared with $1.5 billion the previous fiscal year.

He did not say what was underpinning the growth in exports but officials say the general economy is strengthening as it shakes off the global downturn and a power shortage.

“We have seen, over the last 8 months, a 21 percent growth in our exports,” Zenawi told parliament.

Reliant on agriculture and commodities like coffee and sesame, the Horn of African nation has posted an above 10 percent average annual growth rate over the last 10 years.

Official data shows growth of 9.9 percent in 2008/09, weighed on by the global economic slump and power shortages which dented industrial output.

Meles was speaking to parliament for the last time before national elections on May 23rd. Opposition lawmakers accused him of inflating the growth projections ahead of the poll.

The International Monetary Fund estimates Ethiopia’s economy — which is attracting interest from foreign investors in agriculture, hydropower, and oil and gas exploration — grew 6.5 percent in calendar 2009.

Meles also said annual average inflation slowed to 3.9 percent in March. Year-on-year inflation hit a high of 64.2 percent in July 2008, driven by high food and fuel prices

Source: Reuters