Wednesday, August 02, 2017

Ethiopia economic growth faces political and commodity price risks: Moody's

(Aug 02, (african news))-- International Credit ratings group, Moody’s, have given a positive outlook to the Ethiopian economy but warns that the gains are at risk of three major components.

The three risk factors according to a recent report by the group were: vulnerability to political risk, weather cycles and commodity price volatility. The report, ‘Government of Ethiopia – B1 Stable, Annual Credit Analysis,’ was published on August 1, 2017.

“Ethiopia’s economy has grown rapidly over the last decade and we expect GDP growth of around 8% over the next few years, which will bolster its fiscal position,” said Aurelien Mali, Vice President — Senior Credit Officer and co-author of the report.
''While the authorities' efforts to diversify the economy support creditworthiness, Ethiopia also faces a number of credit challenges, including vulnerability to political risk and weather cycles and price volatility for coffee and gold.''
Moody’s, however, lauded Addis Ababa for fiscal strength which they put down to low debt burden, favourable debt structure and affordable interest payments. Read more from African News »

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