Ethiopia’s economy is to grow by 10.2 percent in the current Ethiopian fiscal year that began on July 8, 2025, Prime Minister Abiy Ahmed has announced.
Addressing the House of People’s Representatives, the lower chamber of the parliament on Tuesday, Ahmed said the government is set to register a 10.2 percent economic growth this fiscal year, up from 9.2 percent it had projected six months ago.
The PM justified the adjustment following assessments conducted by the International Monetary Fund (IMF) and on what he claims is higher-than-expected economic performance over the first half of the fiscal year.
In its fourth review of Ethiopia’s economic program last week, the IMF projected the country’s GDP growth for 2025/26 at 9.3 percent.
“For the first time in history, our forecast is only one [percentage point] higher than the IMF forecast. This is a very small difference,” said the PM.
He told the MPs that unforeseen growth in the agricultural sector remains to be the primary driver of better economic growth, noting that farmers across the country have managed to harvest a total output of nearly one billion quintals of agricultural products over the last six months, outpacing expectations by more than 50 percent.
“Ongoing government-led reforms, rising investments, and progress in key development projects, emphasis on technology, particularly artificial intelligence—and early childhood education are highly contributing to the country’s better economic growth,” he said.
PM Ahmad also cited mega infrastructure developments that are being executed including corridor development and climate-resilient economic growth as major pillars to the economic development.
Looking ahead, Abiy noted that five of the world’s ten fastest-growing economies in 2025 are expected to be African nations, a powerful indication, he emphasised, of the continent’s vast and growing potential for economic expansion in the years to come.
MG/as/APA