In a country where there is rapid population growth, increases in GDP do not necessarily result in an improvement in the standard of living. In my opinion, in a country like Ethiopia macro-economic progress should be measured in terms of GDP per capita (which focuses on standard of living), not on GDP growth (which shows total economic activity of the country). The skills and integrity of the statistics matter particularly in country where there is rapid population growth. Under current conditions where the purchasing power shows almost no growth compared to inflation, how can we say that there is economic prosperity? Has the Government considered the existing discrepancy between the claimed growth figure and the purchasing power of the workers and families? ![]() If the economic growth claim of the Government is based on cooked up data to give flavor to the annual plan, it will have a result opposite to what was planned. Often Governments are accused of fudging data to fit planned targets. Questions regarding the statistics include: is the Government cooking up economic growth data? How is the government growth data collected? Is it transparent? Who has collected it? Is the estimation done by an independent body and global experts? Is there an exaggeration or underestimation? Do the criteria and information used by the government reflect the annual progress of the economy? How is the annual progress of the Ethiopian economy reviewed and measured? What does the statistics look like? How is the macroeconomy performance measured and conceptualized? Has the Ethiopian economy really grown as claimed by the government? There is a phrase which says, “beauty is in the eye of the beholder”, that means people can have differing opinions on what is beautiful. That was consider as miracle and gave the credit to the government plan and effort. The session led by the Prime Minster assessed the country’s economic journey and performance in terms of GDP growth and other macro-economic variables such as inflation, employment creation, export and investment promotion.ĭespite higher inflation, incessant conflicts unfavorable to business, practice of corruption, global recessions, and rapid population growth, which all have negative relationship with economic growth, the Prime Minster declared that the country’s economy grew by 6,6%. On August 3, 2022, The Ethiopian Government held its annual meeting to review the macroeconomic performance of the country. Russian Foreign Minister Sergey Lavrov and his Ethiopian counterpart Demeke Mekonnen arrive at Russian Embassy during Lavrov’s visit to to Addis Ababa, Ethiopia, July 27, 2022.
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