Ethiopia has become Africa’s fifth-largest economy, surpassing Morocco, following a significant revision of its gross domestic product (GDP). The rebased figures now place Ethiopia’s economy at $210.7 billion for the 2025/26 fiscal year, according to a national forum hosted by the Ministry of National Strategy.
The new size of Ethiopia’s economy follows a 59.2% increase from the previous measurement, which had been reported at $201.4 billion, or 24.03 trillion birr, for the 2024/25 fiscal year. The updated GDP figures were announced by Fitsum Assefa Adela, Ethiopia’s Minister of Planning and Development.
Ethiopia joins South Africa, with a GDP of $489.1 billion; Egypt, at $442.9 billion; Nigeria, at $386.7 billion; and Algeria, at $331.9 billion among the continent’s largest economic players. The revised statistics now place Ethiopia as the third-largest economy in sub-Saharan Africa.
Minister Adela emphasized that the rebasing provides internationally comparable data, which bolsters confidence among investors, rating agencies, and development partners. She stated, “The rebasing provides internationally comparable statistics, strengthens investor, rating agency and development partner confidence, and offers a more robust evidence base for fiscal policy, budgeting and development planning.”
Statistical Overhaul Benefits Economy
The new GDP series utilizes the 2017 Ethiopian Fiscal Year (2024/25) as its base year, replacing the outdated series based on 2008 EFY (2015/16). The government indicated that the previous methodology failed to accurately reflect the evolving economic landscape, particularly with the growth of sectors such as digital finance and services.
The revised estimates incorporate recent national agriculture and economic establishment censuses, an integrated household survey, and both federal and regional administrative records. For the first time, figures also include data from state-owned enterprises and non-profit institutions that serve households.
While the 59.2% increase in GDP signifies a larger statistical representation of Ethiopia’s economy, it does not equate to an actual growth in economic output. The update reflects more accurately the various economic activities that were previously underreported.
Officials believe the new series will enhance the quality of economic information accessible to investors and guide fiscal policy, budgeting, and development planning moving forward. Ethiopia’s revision marks an important adjustment in its economic ranking within Africa.
