The International Monetary Fund expects Ethiopia’s economy to expand by 7.2 percent in 2025, placing the country among sub-Saharan Africa’s fastest-growing economies. The Fund’s latest projections also show growth of 7.1 percent in 2026.

According to the forecast, Ethiopia shares the top position in 2025 with Guinea, both projected at 7.2 percent, followed by Rwanda at 7.1 percent and Benin at 7 percent. South Sudan remains an outlier with an estimated 24.3 percent expansion tied to its oil-driven rebound.

For 2026, Guinea is projected to lead the region with growth of 10.5 percent, while Uganda and Rwanda are expected to grow by 7.6 percent and 7.5 percent respectively. Ethiopia’s forecast of 7.1 percent places it among the higher-performing economies in the region that year. The IMF noted that it has no available data or projections for Eritrea.

The projections reflect expectations of continued recovery across several African economies, buoyed by investment activity, gradual improvements in macroeconomic management and easing external pressures. Inflation, external financing needs and the pace of ongoing reforms remain key variables influencing the near-term outlook.