Ethiopia’s economy expanded by 8.8% in the 2024/25 fiscal year, supported by strong performance across key sectors and a 116% jump in export earnings to a record $8.3 billion, President Taye Atske Selassie told lawmakers in Addis Ababa last week.
Addressing a joint session of the House of Peoples’ Representatives and the House of Federation, the president said the government expects growth to reach 9% in the current fiscal year, which began on July 8, as reforms take hold and macroeconomic conditions stabilise.
“This year, the government will consolidate and raise the growth rate to 9 percent through strengthening macroeconomic stability and broadening growth across key sectors,” Atske Selassie said in broadcast remarks.
The president attributed the previous year’s growth to robust expansion in industry, agriculture, mining, and construction.
Industrial productivity climbed to 65% from 59% a year earlier, reflecting progress under the government’s homegrown economic reform agenda aimed at boosting efficiency and competitiveness.
Ethiopia has spent the past two years implementing wide-ranging reforms, including floating the birr, opening its banking sector to foreign entrants, and repealing restrictive export laws to attract investment and stimulate private-sector growth.
The president said export performance was a major driver of last year’s strong showing, with the historic $8.3 billion haul underscoring renewed momentum in foreign trade. He added that the government plans to further diversify the economy and strengthen its export base to sustain the gains.
Inflationary pressures, however, remain a concern. Annual inflation eased to 13.9% in 2024/25 from 19.9% the year before but stayed above target.
Atske Selassie said the government is now targeting single-digit inflation in 2025/26 to protect household purchasing power and ensure stable conditions for business activity.
The president also highlighted growing credit access as a sign of improving financial stability. Total loans disbursed by the banking sector reached 822.8 billion birr last year, with 77% channelled to the private sector, indicating stronger support for productive enterprises.
He said sustaining growth will depend on prudent fiscal management, private investment expansion, and continued export diversification, adding that new projects such as a large-scale fertiliser plant are expected to revolutionise farming and move the country closer to food self-sufficiency.
Atseke Selassie said the government’s economic agenda remains focused on building resilience, expanding key infrastructure, and ensuring that reform momentum translates into broad-based prosperity.
