The Ethiopian economy will maintain its growth lead for the East African region according to the latest World Bank report.
The economy, however, dropped a step in growth forecast in the Sub-Saharan Africa (SSA) region, falling behind Ghana. In June 2017, the WB forecast Ethiopia as the most expansive in SSA pegging growth at 8.3%.
The latest forecast puts Ethiopia at a percentage point behind Ghana. The West African nation is forecast to grow at 8.3% as against Ethiopia’s 8.2%.
Among East African countries, Ethiopia is likely to remain the fastest growing economy, but growth is expected to soften as it takes measures to stabilize government debt.
The report said: “Among East African countries, Ethiopia is likely to remain the fastest growing economy, but growth is expected to soften as it takes measures to stabilize government debt. Growth is expected to recover in Kenya, as inflation eases, and to firm in Tanzania on strengthening investment growth.”
Other 2018 forecasts for the East African region’s economic giants are: Kenya (5.5%), Tanzania (6.8%), Uganda (5.1%) and Rwanda (5.9%). Ethiopia beat Kenya last year to become economic giant of the region according to the IMF.