Ethiopia sees GDP growth at 10.1 pct in 09/10 fiscal

By Duncan Miriri

ADDIS ABABA (Reuters) - Ethiopia sees its economy growing by 10.1 percent in the 2009/10 fiscal year compared with 9.9 percent previously as it shakes off the effects of the global downturn and a power shortage, a senior finance ministry official said on Thursday.

Although it relies on agriculture and commodities like coffee, the Horn of African nation with an estimated annual GDP of 350-400 billion Ethiopian birr, has posted some of the fastest growth rates in sub Saharan Africa in recent years.

"The projection for 2009/10 is real GDP (growth) 10.1 percent, out of which agriculture is projected to increase by 6 percent, industry by 10.2 percent and service by 14.5 percent," Getachew Adem Tahir, head of development planning and research at the ministry told, reporters.

The International Monetary Fund forecasts Ethiopia's economy to grow by 7-7.5 percent this fiscal year (July-June), based on an assessment carried out last September.

Getachew said growth for the preceding year came in lower than expected.

"Our earlier growth projection was 11.2 percent but owing to the financial and economic crisis, there was impact," he said adding the industrial sector was affected, a situation compounded by electricity outages during the period.

He said in the previous fiscal year, agriculture grew by 6 percent, industry 9.9 percent and services sector --including tourism and finance -- expanded by 14 percent.

"The economy for the coming five years is expected to maintain the momentum it has been growing for the past five years, so it is going to be more than 10 percent, on average 10.4 percent per year," he said.