The Ethiopian government’s growing reliance on foreign loans is posing a serious risk of economic collapse, a paper presented Friday by a renowned local economist says.
“Take for instance China, which has loaned over $17 billion to the Ethiopian government for infrastructure projects. Our total investment is 40 per cent of GDP. Our savings rate is between 10-20 per cent of GDP. We import $13 billion and export $3 billion. They (China) are the ones who are filling all these deficit gaps,” said Alemayehu Geda, economics professor at Addis Ababa University and London University. Continue reading Economist Warn Ethiopia’s Overstretched Economy Risks Collapse→
After cooking the books for the past several years to make hyperbolic claims of economic growth, the Ethiopian government finds itself, again, at odds with the International Monetary Fund over this year’s projected GDP growth figures.