NEWS: EEA forecasts above-9% growth but warns of weak job creation
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Analysis

EEA forecasts above-9% growth but warns of weak job creation

Nov 12, 2026
EEA forecasts above-9% growth but warns of weak job creation

Key takeaways

  • Above 9% annual real GDP growth is projected over three years in the EEA outlook reviewed by StockMarket.et.
  • Each 1% output increase corresponded to only 0.27% employment growth on average during 2000–2025.
  • Baseline inflation is forecast at 16.5% in 2026, easing to 14.9% by 2030.
  • The inflation model’s 2025 estimate was 28.5%, versus the official 13.9%, an important forecasting limitation.

Why it matters

  • Strong output growth does not imply equally strong job creation.
  • These are model projections, not current inflation readings or guaranteed outcomes.
  • Analysis: Persistent price pressure would complicate business budgeting, but the model’s historical mismatch warrants caution.

What to watch

  • Actual employment and inflation compared with forecasts.
  • Updated assumptions and evidence of stronger job creation.

Source: StockMarket.et | 11 November 2026 |  Original report

Image: AI-generated editorial illustration.