Ethiopia’s economy is projected to expand by 10.2 percent during the current Ethiopian fiscal year which began on July 8, 2025.
The projection was presented during the Council of Ministers’ 100-day macroeconomic performance review, which examined global economic trends, Ethiopia’s quarterly economic outcomes, and the nation’s medium-term growth outlook.
According to the review, Ethiopia maintained robust growth in the previous fiscal year, registering 9.2 percent GDP expansion, driven by steady gains in agriculture (7.3%), industry (13%), and services (7.5%).
The country’s economic structure remains diversified, with agriculture contributing 31.3%, industry 30.2%, and services 39.6% to the national output.
Looking ahead, the 10.2 percent growth forecast for current fiscal year is underpinned by ongoing government-led reforms, rising investments, and progress in flagship development projects.
The completion of the Grand Ethiopian Renaissance Dam (GERD), along with new fertilizer production and gas development initiatives, is expected to drive industrial expansion and strengthen energy and export capacity.
The agriculture sector is projected to grow by 7.8 percent, supported by improved productivity and input supply, while the industrial sector is expected to increase by 13.2 percent, propelled by new manufacturing projects and value-chain integration.
The mining sector is anticipated to exceed performance targets, while services are forecasted to grow by 9.3 percent buoyed by increased trade, transport, tourism, and the expanding digital economy.
Ethiopia’s commodity exports reached $2.5 billion in the first quarter, surpassing both set targets and last year’s performance for the same period.
The financial sector also showed strong growth, with loan disbursements up 113 percent compared to the same quarter last year, signaling rising private-sector activity and investment appetite.
Digital finance continues to gain momentum, with transactions worth 6.5 trillion birr recorded over the past three months.
The overall review underscores Ethiopia’s accelerating progress toward structural transformation and inclusive, sustainable economic growth, positioning the nation among Africa’s fastest-growing economies.
MG/as/APA