July 13, 2017 - The World Bank named Ethiopia as the fastest-growing economy of the world in 2017. In its 2017 edition of the Global Economic Prospects, the World Bank stated that Ethiopia offers security, low-tariff access to markets in nearby rich countries, and cheap labor, which helped the country to lure big international investors.
Although unstable currencies and falling revenue from commodities continue to be a challenge to African countries, the International Monetary Fund (IMF) estimates that Ethiopia’s economy grew 8.7% last year and its GDP is forecast to grow by 8.3% in 2017.
The East African country’s accelerating growth is due to the dominance of the state as well as its ability to retain its value despite the global downturn.
On the global ladder, Uzbekistan has the second-fastest-growing economy, with projected growth of 7.6% thanks to rising oil prices and generally supportive policies among governments of several large countries in the region.
The development model used by Ethiopia is being led by a government that has been in power after defeating a military regime in 1991.
Ethiopia has a relatively closed economy which makes it difficult for private investors to come in, however, the East African country has the back of the Chinese.