Ethiopia Becomes Africa's Fifth-Largest Economy After GDP Rebasing
Ethiopia has risen to Africa's fifth-largest economy following a statistical GDP rebasing that accounts for modern digital finance and manufacturing sectors.
The Government of Ethiopia has become the fifth-largest economy in Africa after revising its Gross Domestic Product (GDP) to $210.7 billion for the 2025/26 financial year. The government rebased its GDP using 2024/25 as the new reference year, replacing a decade-old benchmark from 2015/16 to better capture growth in mining, manufacturing, modern trade, and digital finance.
This statistical update increased the 2024/25 GDP estimate by 59.21%, moving Ethiopia ahead of Kenya and Morocco, though it remains behind Nigeria, Egypt, South Africa, and Algeria. While the revision raises the GDP per capita to $1,517, the World Bank Group continues to classify Ethiopia as a low-income country because it uses Gross National Income (GNI) rather than GDP for status determination.
Government officials noted that the exercise improves debt sustainability assessments and fiscal planning but does not increase government revenue or household incomes. The Ministry of National Strategy clarified that "this does not mean the economy grew overnight," and announced plans to rebase the GDP every five years to ensure statistical accuracy.
