During the 2008/09 fiscal year, the trade balance recorded a deficit of 5.1 billion dollars as compared to 5.3 billion dollars in the 2007/08 fiscal year. This means that the widening of the trade deficit decreased by 2.84pc. In addition, 4.9 billion dollars in trade deficit was recorded for the last nine months of the fiscal year.

According to the government’s statistics, the average inflation rate has been on the decline since peaking at 12.3pc at the end of the 2005/06 fiscal year. There has been too much money supply in Ethiopia (close to 82.3 billion Br) during 2008/09, which has helped the average inflation to reach 45.2pc in the 2008/09 fiscal year.

The stock of money during the 2006/07 fiscal year reached 56.7 billion Br, indicating an 18pc increase vis-à-vis the level in the previous year and a 17pc increase during the next year. Broad Money Supply reached 82.3 billion Br during the 2008/09 fiscal year.