Economy
World Trade Picks Up as Ethiopia Pays More for Fuel and Fertilizer
Addis Fortune · 2 hours ago · Read the Full Story on Addis Fortune
AI SUMMARY
While the WTO raised its global goods trade growth forecast for 2026, net importers like Ethiopia face severe pressure from surging fuel and fertilizer costs.
- The World Trade Organisation raised its 2026 global goods trade growth forecast to 3.9pc from 1.9pc, while cutting services trade growth to 3.3pc.
- WTO chief forecaster Coleman Nee warned that net importers like Ethiopia would be squeezed by higher import costs resulting from Middle East conflict.
- Ethiopia's regulated retail petrol price surged 36.7pc to 167.50 Br a litre and diesel rose 49.2pc to 180.46 Br over the past year.
- The planned fertilizer subsidy ceiling for 2026/27 expanded to 100 billion Br from 84 billion Br, representing a 19pc increase.
- Experts estimate that combined fuel and fertilizer subsidies could reach 350 billion Br to 400 billion Br this fiscal year.
- Headline inflation climbed back to 13.9pc by June, with food inflation reaching 15.1pc.
- Ethiopia's gross forex reserves stood at about 5.9 billion dollars at the end of June, covering approximately 2.1 months of imports.
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