Ethiopia’s macroeconomic outlook is “broadly favourable” for 2010-11, the International Monetary Fund (IMF) has said.

The real GDP growth will continue to rise, reflecting an anticipated bumper harvest and on-going strong goods and services exports, particularly gold.

According to the IMF, Ethiopia has successfully implemented policies to reduce inflation and rebuild external reserves under the Exogenous Shocks Facility (ESF)-supported programme.

Based on a much stronger performance than anticipated in 2009/10, the medium term export outlook has been raised on higher gold and service exports.

Ethiopia is determined to focus on sustaining macroeconomic stability, enhancing domestic resource mobilisation, promoting broad-based and pro-poor growth, and increasing investment in infrastructure, primary sectors and core MDG clusters, the IMF noted.

The new 5-year Growth and Transformation Plan (GTP) includes ambitious real growth objectives of at least 11%, with an aim of placing Ethiopia in the ranks of middle-income countries by 2025. In line with the GTP objectives, Ethiopia is determined to ensure that the economy continues to sustain its growth trajectory and achieve the development goals, including poverty reduction and the MDGs.

The Executive Board of the IMF also approved, on 12th November, the second and final review of Ethiopia’s economic performance under the 14-month arrangement under the high-access component of the ESF. The approval will enable Ethiopia to draw about $62.67 million, bringing total disbursements to the total available under the arrangement to about $240.24 million. It is to be recalled that the Executive Board approved a 14-month arrangement under the high-access component of the ESF in August 2009, which was extended in October 2010 to allow for completion of this second and final review and allow for the final disbursement.