Ethiopia’s Economy Jumps 59% to $201bn After GDP Rebasing

Ethiopia has revised the measured size of its economy upward by 59.2% to $201.42 billion for the 2024/25 fiscal year, after replacing its decade-old national accounts benchmark with a new base year. The government also reported GDP of $210.7 billion for 2025/26, placing the country higher in Africa's economic rankings and altering the ratios used to assess its public debt, taxation and economic performance. The change comes at a sensitive moment. Ethiopia is implementing wide-ranging economic reforms and working to conclude a restructuring of external debt that followed its 2023 Eurobond default. A larger GDP denominator makes debt-to-GDP ratios look smaller, but does not reduce the amount creditors are owed or automatically put additional cash into government accounts. The more consequential question is whether more accurate measurement of digital services, agriculture and emerging industries can translate into stronger revenue collection, better investment decisions and renewed lender confidence.