Price hike unbearable
Holiday Market from the 2023 Easter in Dessie (borkena)By Staff Reporter
ADDIS ABABA – (BORKENA) – Economists are saying that the 2015 Ethiopian Fiscal Year (EFY) was a year in which various economic accomplishments were registered and many challenges were faced. Inflation, which has been the major problem of the country for consecutive years, has become the major challenge the country has encountered over this just-ending fiscal year.
The price inflation that has not shown stability in 2015 EFY can be cited as a major cause for putting the heaviest pressure on the Ethiopian economy in the 2015 FY, according to economists.
Especially in 2015 EFY, the prices of products such as teff (staple food), wheat, and others have shown the highest increment in the stated year.
At the beginning of September 2015 EFY (a year back), a quintal of white teff, which was sold for less than six thousand birr, has come to cost for the first time over 10 thousand birr in 2015 EFY. The fact that it reached 15 thousand birr by the end of this just ending August month indicates how the price doubled in less than a year.
Apart from the frequently cited reasons for the increase in inflation in the fiscal year 2015, the economists raised the point that the policy measures taken by the government have also contributed to inflation. The economists indicate that the price hike in fuel, including other government policy decisions, has also played a role in inflation. The causes of the problem, such as security and stability, should be addressed so that this inflation won’t be carried over into the next Ethiopian budget year.
The advice is that appropriate implementation of monetary policy decisions of the National Bank of Ethiopia should be a solution to curb inflation.
Export performance
Ethiopia’s export performance is one of the major economic issues of this just-ending 2015 EFY. Reports indicate that exports could not be carried out as planned during this Fiscal year.
Though the government had planned to earn 5.4 billion dollars this 2015 EFY, the actual amount earned dropped to only 3.9 billion USD, which is 25 percent of the set plan. In terms of performance execution of the previous EFY 2014, the 2015 execution depicts over one billion dollar reduction.
Economists say that although the drop in world market prices is one of the reasons for the slowdown in export trade, domestic instability and corrupt practices, including the problem-ridden trading system, have been stumbling blocks for the export trade to get successful at the planned level.
Failure to move export products from place to place and insufficient supply of products to the foreign market has also contributed to the poor performance of foreign exports.
The Ethiopian Investment Commission disclosed that 3.4 billion dollars was secured in foreign direct investment during the just-ending 2015 Ethiopian fiscal year, and 269 investors received investment permits to engage themselves in the sector.
This fiscal year has been marked as a year in which 148.3 million dollars were obtained from the export of industrial parks and job opportunities were also created for 67 thousand compatriots. Regarding the income obtained from remittances, the data indicates that 3.7 billion dollars were secured in this just-ended fiscal year.
Source :
Amharic Weekly Reporter
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