Ethiopia’s GDP Revised, Economists Warn Against Misinterpretation

Ethiopia's gross domestic product has risen by 59.21 per cent following a statistical rebasing exercise, according to figures shared by Minister of Strategic Affairs Bereket Fessahatsion. The revised national accounts show GDP for the 2024/25 fiscal year at 24.03 trillion birr, equivalent to US$201.42 billion, compared to the prior estimate of 15.09 trillion birr, or US$126.5 billion.

Minister of Finance Fitsum Assefa announced that GDP reached 31.86 trillion birr, or US$210.7 billion, in the 2025/26 fiscal year during the unveiling of the revised accounts. Economists emphasized that the updated figures may enhance policymaking but cautioned against equating the higher estimate with actual economic growth or improved living standards.

Economists interviewed by Capital warned that the GDP revision should not be interpreted as a sudden expansion in economic activity or an improvement in living standards. They highlighted the importance of distinguishing between a larger estimate of economic size and newly generated wealth.