Last year Ethiopia was the world’s fastest growing economy, banking growth of 10.2% (it’s reporting year runs between July and June). But the Horn of Africa country is currently battling its worst drought in 30 years, with a fifth of its approximately 100 million people in need of food aid, with the rescue bill estimated at $1.4 billion. The adverse weather is linked to the ocean-warming effects of El Nino. As a result the IMF says, Ethiopia’s economy will this year decline substantially to 4.5%—it had projected 8.1% this year—with recovery to 7% seen in 2017. The country over the last decade posted average growth of more than 10% annually.
Prime minister Hailemariam Desalegn is however holding out, projecting growth of between 7-10% this year.