The Ethiopian economy is set to expand by 7.1 percent in 2026, the International Monetary Fund (IMF) has said.
In its projections issued on Monday, IMF said Ethiopia and Guinea are anticipated to register the same 7.1 percent economic growth followed by Rwanda at 7.1 percent and Benin at 7 percent. South Sudan stands out with a projected 24.3 percent expansion, driven by its oil sector.
According to the IMF’s report, the East African country will expand by 7.2 percent in 2025, becoming one of the fastest-growing economies in sub-Saharan Africa.
The IMF highlighted the importance of fiscal reforms and effective debt management in supporting Ethiopia’s growth.
Abebe Aemro Selassie, Director of the IMF’s African Department, said stronger revenue mobilisation and improved debt policies were among the key factors for sustaining momentum and building resilience amid regional fiscal pressures.
Across sub-Saharan Africa, growth is projected to stand at 4.1 percent this year and it is expected to grow to 4.4 percent in 2026. While fast-growing economies such as Ethiopia, Rwanda, Côte d’Ivoire, and Uganda demonstrate resilience, resource-dependent and conflict-affected states continue to face persistent challenges, with limited gains in income per person.
Commodity price volatility, high borrowing costs, and declining foreign aid are putting additional strain on government budgets and policy space.
Ethiopia’s economy was said to have expanded by 8.8 percent in the previous fiscal year, supported by strong performances in industry, agriculture, mining, and construction.
In its regional outlook, IMF affirmed that the economic momentum across Sub-Saharan Africa is continuing, demonstrating resilience despite various global challenges.
MG/as/APA