ADDIS ABABA - An export boom is likely to drive 10 percent annual economic growth in Ethiopia for the next few years, the finance minister said on Thursday, but added that the target was a minimum to tackle poverty.
"This year (2007/08) we project the annual economic growth to be about 10 percent," Finance Minister Sufian Ahmed told Reuters. "If a meaningful blow is to be made to poverty, the economy has to grow by a minimum 10 percent."
Exports have grown an average 25 percent in the agriculture-dependent economy over the last four years with economic growth averaging about 7 percent and reaching 9 percent in 2006.
"It's export-led growth," Sufian added.
"We think we can sustain at least 10 percent growth per annum for the next several years."
Despite its healthy economic figures, the Horn of Africa nation of 81 million people is still one of the world's poorest, ranking 170 out of 177 on the U.N. Human Development Index.
Sufian blamed "imported inflation" -- the rising cost of imported fuel, machinery and construction material -- for annualised inflation of about 16 percent.
Another factor pushing prices higher was farmers stockpiling their cash crops including sesame, oil and seeds, for sale in leaner times, he said.
"Studies show that farmers are starting to have some assets in their hands, starting to accumulate wealth -- this is unheard of in Ethiopia -- so they are in no hurry to bring their products to the market," he noted.
