Maybe this contributed to stabilize the inflation rate somewhat but it may also have contributed to foreign exchange shortage in the economy,” Patrick Heinisch, an economist said. At the end of 2021, foreign exchange reserves stood at USD 1.6 billion, or 1.3 months’ worth of imports of goods and services. The export of industrial items reached a record-high USD 500 million in exports during the previous fiscal year. However, this is negligible in light of the development in the coffee industry, which generated USD 1.4 billion in revenue during the previous fiscal year. Another economist, Mengistu Ketema (Prof.), also believes the economy had not been in a good condition last year.

Source: Ethiopian News September 10, 2022 10:37 UTC