Ethiopia’s economy is projected to expand by 10.2% in the current Ethiopian fiscal year, supported by ongoing reforms, rising private investment, and the continued rollout of major public projects, according to the Office of the Prime Minister.

The projection was presented during the Council of Ministers’ 100-day performance review, which evaluated global economic trends alongside Ethiopia’s macroeconomic performance in the first quarter of the current Ethiopian fiscal year. Officials said the economy has maintained resilience amid global uncertainty, underpinned by structural reforms and targeted public spending.

In the 2024/25 fiscal year, Ethiopia recorded 9.2 percent GDP growth, driven by a 7.3 percent rise in agricultural output, 13 percent expansion in industry, and 7.5% growth in services. Sectoral contributions were 31.3 percent for agriculture, 30.2 percent for industry, and 39.6 percent for services, signalling gradual diversification of the economy.

The government attributed the stronger 2025/26 outlook to ongoing reform measures, development programmes, and new investments expected to strengthen industrialisation and productivity.

Earlier this month, President Taye Atske Selassie told parliament that Ethiopia is targeting nine percent economic growth and single-digit inflation in 2025/26, noting that the previous fiscal year saw an 8.8 percent expansion, supported by performance in industry, agriculture, mining, and construction.