Ethiopia Becomes World Fastest Growing Economy Amid Small Businesses Strike

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Ethiopia is the fastest-growing economy in 2017, according to the World Bank’s latest edition of Global Economic Prospects.

Ethiopia’s GDP is forecast to grow by 8.3% in 2017. By contrast, global growth is projected to be 2.7%.

The East African country’s accelerating growth comes on the back of government spending on infrastructure.

However, borrowing to finance Ethiopia’s large public infrastructure projects has led to a rise in public debt, which increased by more than 10% of GDP between 2014 and 2016, and now exceeds 50% of GDP.

Many emerging market economies have high levels of public debt, and the World Bank says it is concerned about this because it could drag down growth.

Worsening drought conditions could also affect Ethiopia’s growth, says the report.

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