In order to have sustainable and broad-based economic growth Ethiopia has implemented the third poverty reduction strategic plan, viz., The Growth and Transformation Plan(GTP) during 2010–11 to 2014–15. However, inspite of economic growth achieved during this period several macro economic problems such as employment generation, poverty eradication, inflation and fiscal deficit are still haunting the economy of Ethiopia. Therefore, this paper verifies the major macroeconomic policy objectives of the five year Growth and Transformation plan (GTP) with the available empirical data. In view of this the researcher reviewed a wide range of National Surveys by Central Statistics Agency of Ethiopia and Policy Documents and Studies, including Government Policy Documents and Strategies. The study finds that the economic growth registered so far is broad-based and pro-poor. Growth has continued to generate employment, improving incomes and reducing poverty. However, despite the progress made, employment generation and poverty eradication still remain as the major development agenda. Ethiopia, therefore, should remain committed to sustaining inclusive and pro-poor development strategy over the coming years to further address the poverty and employment generation challenges.
Growth and Transformation plan, Poverty eradication, employment generation, Millennium Development Goals
