Economist: Ethiopia and Eritrea rank 3rd fastest growing economies for 2011

Economist: Eritrea to show fast growth in 2011

Ethiopia along with Eritrea are predicted to be the third fastest growing economies in 2011, according to the Economist’s “The World in 2011” Publication. The paper said, both Ethiopia and Eritrea are expected to grow by 10% for the coming year and rank third behind Qatar and Ghana.

Qatar with its burgeoning gas sector economy is the fastest growing economy in the world for the second year in a row. Eritrea is a new comer with most of the growth coming from the mining sector, the magazine said.                                 

“The ruling Ethiopian People’s Revolutionary Democratic Front tightened its grip in 2010 elections, knocking a fragmented opposition out of the game until 2015. A New five-year economic plan will emphasize infrastructure development, industrialization, large scale commercial farming, and small private enterprise. Donor support and worker remittances will keep the national accounts in shape and the economy will grow by 10%”, said the report.

On its “To watch” prediction, the magazine said, “Ethiopia’s support for the beleaguered government of Somalia will continue, cementing its strategic importance in the Horn of Africa and tightening its alliance with the United States”.

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Editor’s Note:

1) The material is from the print edition of “The World in 2011”, a publication by the Economist, which is in newsstands now. The material in not online at this time.

2) While Eritrea’s economy is largely being backed by mineral and a strong agriculture sector, and both Qatar and Ghana’s economies are being backed largely by oil and gas, it raises questions about Ethiopia’s overall statistics. Many credible analysis have stated Ethiopia’s double-digit growth figures are being cooked up by the Ethiopian regime for domestic political consumption.

For example, the highly credible Financial Times reported a few months ago that Ethiopia’s double-digit growth claims of recent years is being supported by “dubious statistics” and these same fabricated figures are “bandied around by development experts”.