Ethiopian Prime Minister Abiy Ahmed has announced that the country’s economy is on track to significantly exceed its projected 8.4% economic growth target for the current financial year. This optimistic outlook is attributed to successful implementation of macroeconomic reforms and the “Homegrown Reform” programme, which has enabled Ethiopia to demonstrate sustainable growth despite ongoing global challenges. The primary drivers are key sectors that have shown robust development: agriculture grew by 6.1%, while industry is expected to see a sharp 12.8% increase in production.
A major contributor to the surge in revenue is the mining sector, with gold exports growing dramatically from 4 tonnes last year to 37 tonnes, resulting in a revenue increase from US$300 million to a substantial US$3.5 billion. Furthermore, total exports surpassed US$8.1 billion, representing more than double the previous year’s figures. The services sector is also bolstering growth, evidenced by a strong tourism recovery, hosting 1.3 million tourists and over 150 international conferences.The financial sector is also demonstrating significant expansion, with the volume of loans surging by 75% and the number of mobile banking users reaching 55 million people. This multi-sectoral growth highlights Ethiopia’s successful strategy of structural reform and internal investment, positioning the country for continued resilience and economic vitality within the broader emerging markets landscape.
