The National Bank of Ethiopia (NBE) has reported that the country’s expenditure on import of goods reached 11.7 billion dollars in the past three-quarters of the current fiscal year.
Import Bills Down to $11.7b,
Export: $2b ,
This can only be termed as the mother of all unsustainable economic ”growths”, a perfect recipe for out of control inflation and economic disaster.
(Addis Fortune) – The amount is eight percent lower compared to the same period last year. This has been reported at a time when the country is hit by a shortage of foreign currency and a surge in the price of oil in the international market.
Specifically, the amount of foreign currency spent to import oil increased by 29pc due to a significant surge in global price.
On the other hand, in the past nine months, export of goods amounted to two billion dollars. This causes a trade deficit of 9.7 billion dollars. In Ethiopia, exports can only finance 17pc of the imported amount.
The contribution of exports to GDP is insignificant. Between 2010 and 2015, export contribution to GDP averaged 13pc, exhibiting a decline of two percent annually.
Comparing with neighbouring countries, export contribution to GDP in Kenya and Uganda is 20pc and 19pc, respectively.