ADDIS ABABA, Feb 3 – Ethiopia expects its economy to expand by 10.2% in the 2025–26 fiscal year, Prime Minister Abiy Ahmed said on Tuesday, revising the outlook upward from the finance ministry’s earlier projection of 8.9%.
Abiy told lawmakers that the revised forecast followed a review of economic performance during the first half of the current fiscal year, which indicated stronger-than-expected growth momentum.
“Based on a review of the growth performance over the past six months of the current fiscal year, the plan has been revised to project that Ethiopia will record 10.2% growth by the end of the year,” the prime minister said.
Ethiopia’s fiscal year runs from July 8, 2025, to July 7, 2026.
The revised outlook comes as the East African nation continues to implement wide-ranging macroeconomic and structural reforms under a multi-year programme supported by the International Monetary Fund. The reforms are aimed at stabilising the economy, improving competitiveness, and restoring debt sustainability following Ethiopia’s external debt restructuring process.
Officials have pointed to measures including exchange-rate liberalisation, efforts to boost exports and remittance inflows, and steps to strengthen fiscal discipline as key drivers of the improved growth outlook.
