IMF Warns of Inflation and External Account Risks Despite Ethiopia’s Growth Outlook

The International Monetary Fund (IMF) has released its October 2026 World Economic Outlook, projecting a strong growth trajectory for Ethiopia. However, the report cautions that this economic outlook is threatened by persistent inflationary pressures and a widening current account deficit. The IMF emphasizes that managing these macroeconomic imbalances is critical for sustained development. These findings highlight the ongoing struggle to balance rapid economic expansion with price stability and external financial health.