Ethiopia’s debt-to-gross domestic product (GDP) ratio has fallen to 13.7 percent from nearly 30 few years ago, Fitsum Asefa, the country’s minister of planning and development disclosed over the weekend.
Speaking about economic performance of the country over the past nine months of the current 2024/2025 Ethiopian fiscal year which began on July 8, 2024, Asefa said the country’s Debt-to-GDP has significantly decreased, attributing the reduction to economic reforms implemented over the past five years.
The minister said the East African country has paid back a 10-billion-U.S.-dollar loan over the past five years by enhancing its income-generating capacity, the state-run Ethiopian News Agency reported on Sunday.
Noting that the country had been debt-ridden until recently, Asefa attributed the success to a comprehensive macroeconomic reform the government has implemented in recent years.
The presentation indicated that the government’s ongoing reform program has contributed to a more stable macroeconomic environment, supporting positive trends in savings, investment, and external financial indicators.
The review showed that the implementation of a new foreign exchange regime has led to increased remittance inflows and a growth in foreign currency reserves.
She said export earnings have also improved across key sectors such as agriculture, mining, industry, and electricity. Top-performing export items include coffee, gold, pulses, oilseeds, flowers, and electricity.
Asefa noted that the global economy is projected to expand by 3.3 percent in 2025, with Ethiopia’s economy forecast to grow by 8.4 percent.
MG/as/APA