Please wait, video is loading...
-
Wedi
- Member+
- Posts: 7993
- Joined: 29 Jan 2020, 21:44
Ethiopia's Economy Free Fall, <1% economic growth expected!! - World Bank reports!!
Ethiopia's Economy Free Fall, <1% economic growth expected!! - World Bank reports!!
-
gearhead
- Member+
- Posts: 5526
- Joined: 08 Jun 2014, 16:29
Re: Ethiopia's Economy Free Fall, <1% economic growth expected!! - World Bank reports!!
Growth only has meaning when you can control the inflation rate! 1 or 6 is irrelevant when the price of commodities is spiralling out of control.
The government claims it has acted to control commodity prices through its large farm plots of wheat and its mass horticulture projects in Oromia! Yet, it is also projected that the Oromia government is the first to be axed out of existence right after the election, an act equivalent to cutting off the hands of the structure that it claims to be feeding it!
Simply put, one cant be the architect of chaos and stabilize inflation at the same time.
Then there is the hard currency reserve increase claim which doesnt add up when considering reinstatement of franco valuta schemes to remedy cooking oil shortage. items coming in through these schemes are going to be at-market exchange rate, plus huge mark-ups as they tend to be operated by hit and run stakeholders, in it for the quick, high margin potentials. Franco valuta is thus an indicator of drying up reserves and is inflationary.
The government claims it has acted to control commodity prices through its large farm plots of wheat and its mass horticulture projects in Oromia! Yet, it is also projected that the Oromia government is the first to be axed out of existence right after the election, an act equivalent to cutting off the hands of the structure that it claims to be feeding it!
Simply put, one cant be the architect of chaos and stabilize inflation at the same time.
Then there is the hard currency reserve increase claim which doesnt add up when considering reinstatement of franco valuta schemes to remedy cooking oil shortage. items coming in through these schemes are going to be at-market exchange rate, plus huge mark-ups as they tend to be operated by hit and run stakeholders, in it for the quick, high margin potentials. Franco valuta is thus an indicator of drying up reserves and is inflationary.