Ethiopia dethrones Ivory Coast as Africa's fastest growing economy to top the world

The World Bank’s 2017 edition of the

The East African nation took the lead in terms of the of fastest-growing economies not just in Africa, but the world at large.

In 2016 Ivory Coast was Africa’s fastest growing economy,that is according to the IMF’s World Economic Outlook. The West African nation’s GDP was expected to grow by 8.5% in 2016 this year.

Although unstable currencies and falling revenue from commodities continue to be a challenge to African countries, the International Monetary Fund (IMF) estimates that Ethiopia’s economy grew 8.7% last year and its GDP is forecast to grow by 8.3% in 2017.

The East African country’s accelerating growth is due to the dominance of the state as well as its ability to retain its value despite the global downturn.

On the global ladder, Uzbekistan has the second-fastest-growing economy, with projected growth of 7.6% thanks to rising oil prices and generally supportive policies among governments of several large countries in the region.

The development model used by Ethiopia is being led by a government that has been in power after defeating a military regime in 1991.

Ethiopia has a relatively closed economy which makes it difficult for private investors to come in, however, the East African country has the back of the Chinese.

Reports say the country offers security, low-tariff access to markets in nearby rich countries, and cheap labour.