1. The Ethiopian authorities value the engagement with the Fund and thank staff for the constructive dialogue, during the 2016 Article IV mission, which continues to inform implementation of the country’s macroeconomic policy and development agenda. The authorities broadly agree with staff’s balanced assessment of the economic challenges and priorities for Ethiopia in the short and medium term.
2. The Ethiopian economy which is one of the fastest growing economies in Sub Saharan Africa has achieved tremendous social and economic gains with increasingly inclusive and employment-generating growth realized in recent years. The second Growth and Transformation Plan (GTP II), which was launched in October 2015 builds on this progress to guide the national development policy priorities for the next five years, 2015/16–2019/20. The key objective of the GTP II is to maintain rapid, sustainable and broad-based growth in a stable macroeconomic environment conducive for investment and international competitiveness. The plan envisions transforming the Ethiopian economy into lower middle income status by 2025.