According to Mamo Mihretu, the Governor of the National Bank of Ethiopia. The anticipated reduction in inflation is largely attributed to the government's ongoing economic reforms.

In a significant development, Ethiopia entered into a four-year agreement with the International Monetary Fund (IMF) last July, securing a $3.4 billion support package. This deal forms part of the country's broader reform programme, which includes the floatation of its currency and efforts to streamline debt restructuring.

For the past three years, inflation has been a persistent challenge for Ethiopia, with the rate hovering around 30%. However, recent figures show a positive trend, with inflation dropping to 13% in March, offering hope for further improvement in the coming months.

The government's reform efforts, aimed at stabilising the economy and addressing key fiscal challenges, have been crucial in this progress. Should the expected decline in inflation materialise, it will be seen as a significant milestone in Ethiopia’s economic recovery and a testament to the effectiveness of the ongoing reforms.

--ChannelAfrica--