Over one million Ethiopians were lifted out of poverty
within a year from July 2012 to end of June 2013 fiscal year, said the
government.
The development, explained the State Minister of
Finance and Economic Development, Dr Abraham Tekestea, was due to the
9.7 per cent economic growth the country registered last year.
The minister was briefing the media in his office
Wednesday about Ethiopia's economic performance during the last fiscal
year ended July, 7, 2013.
“As a result of the 9.7 per cent GDP growth rate
we registered last year, we are able to lift over one million people out
of poverty,” he said.
“Our growth is broad-based and the GDP growth we
registered last year is above the minimum requirement to halve poverty
as indicated in the Millennium Development Goals. It is also above the
sub-Saharan GDP growth,” added the minister.
He disclosed that currently, Ethiopia's GDP per
capita had reached $550 from $510 last year, while the country’s GDP was
$47 billion.
Last year, Ethiopia's infant
industry sector grew by 18.5 per cent followed by 9.9 per cent service
sector. Agriculture grew by 7.1 per cent, from 4.9 per cent the previous
year.
Currently, 45 per cent of
Ethiopia's economy is dominated by the service sector, followed by
agriculture and industry, which contribute 43 per cent and 12 per cent
respectively.
According to economists at
the World Bank, who conducted a live video conference with African
journalists this week, 1 per cent GDP growth in different countries
could reduce poverty by 0.7 per cent.
“Growth is necessary, but it
is not sufficient to reduce poverty in Africa,” said Mr Punam
Chuhan-Pole, lead economist of the World Bank, who said that currently
almost one out of every two people in Africa lived in extreme poverty.
The economist suggested that
growth in Africa should focus on providing basic services to the very
poor at their doorsteps and fight corruption, while introducing good
governance to bridge the inequality gap.
Claiming that the effect of
Ethiopia's growth on poverty reduction was different from many African
countries, Dr Abraham said: “Our economic growth is all inclusive, we
focus on the rural people where the majority of the poor people live”.
SOURCE: AFRICA REVIEW
