Ethiopia's economy is expected to grow by at least 7.5% in the year to July 2023, Prime Minister Abiy Ahmed told the country's parliament on Tuesday, lower than the 9.2% projection officials had previously forecast.

"Taking those challenges I previously mentioned, last year's GDP growth was 6.4%. And for this year, if we maintain the peace we have now, we expect to grow at least by 7.5%," Abiy told lawmakers, referring to the challenges of an internal conflict and COVID-19.

Ethiopia's state finance minister Eyob Tekalign Tolina told Reuters last month the GDP forecast for the year to July 2023 was 9.2%.

The nation of 115 million has been one of the world's fastest-growing economies in the past 15 years, boosted by heavy infrastructure investment, but the COVID-19 pandemic and a conflict in the Tigray region slowed expansion in the past two years.

The Ethiopian federal government and forces from Tigray this month signed a ceasefire agreement to end fighting in the region after two years of brutal war. (Writing by Tommy Reggiori Wilkes Editing by Alexander Winning)