Ethiopia anticipates a slight acceleration in economic growth for the fiscal year starting next month, according to Finance Minister Ahmed Shide. Growth is projected at 8.9%, up from 8.4% this year, supported by ongoing reforms and an IMF loan program. The budget deficit will rise marginally to 2.2% of GDP, with total spending reaching 1.9 trillion birr ($14 billion). Ethiopia’s export revenue surged 118.2% over the past 11 months to $7.2 billion, driven by coffee and gold exports. This performance strengthens the bondholders’ argument that Ethiopia faces a liquidity issue rather than insolvency, impacting negotiations over the country’s defaulted $1 billion bond. Formal talks on restructuring are expected soon.
— new from Reuters
