Ethiopia’s economy is expected to expand by 10.2% in the 2025-26 fiscal year, Prime Minister Abiy Ahmed announced on Tuesday, revising upward the finance ministry’s previous projection of 8.9% given in June.
Speaking to lawmakers, Abiy said the revision comes after a thorough review of the country’s economic performance over the first six months of the fiscal year. “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,” he stated.
The forecast suggests a resilient economy despite ongoing challenges, including regional conflicts and global economic headwinds. Analysts noted that strong agricultural output, infrastructure development, and industrial expansion have contributed to the upward revision.
The government has emphasized that maintaining this growth trajectory will require continued investment in infrastructure, energy, and industrial projects, alongside reforms to improve the business environment and attract foreign investment.
Prime Minister Abiy’s announcement highlights Ethiopia’s ambition to accelerate development and sustain high growth rates in one of Africa’s fastest-growing economies, while addressing structural challenges and ensuring inclusive economic benefits for its population.
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