Economy, Finance and Trade: Ethiopia

October 2025

Ethiopia’s economy grew by 6.9% in 2024, surpassing the regional average, driven by private spending and exports, though public investment lagged. Growth is projected to average 7.6% annually over the period to 2029, among the fastest rate globally, while inflation is set to ease to 16.2% in 2025, but remain high, hitting the vulnerable hardest. Fiscal consolidation continues as the government pursues stability, but humanitarian needs have deepened following the temporary suspension of US aid.

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Overview:

The Country Briefings series examine market potential, economic and consumer trends impacting each country and how they are set to change.

Each Country Briefing covers one of these topics:

Economy, Finance and Trade: Understanding the structure, health and potential risks of an economy are important for decision-making within an existing operating environment as well as for expansion strategies. Real GDP growth, inflation and exchange rate fluctuations will directly impact consumer market potential. Import and export trade profiles help gauge how open an economy is to trade and investment, while analysis of government finances can be used to explore macroeconomic stability and susceptibility to economic shocks.

Income and Expenditure: Insights into income, wealth and expenditure of consumers are vital in helping businesses make strategic decisions with regards to which country (or even which region within a country) to enter, which consumer segment to target, which products or services to market, and at which price point. Other factors such as the size and expansion of the middle class and income inequality are also important in helping companies gauge the potential of a country market.

Households: Global shifts in gender, ageing, migration and housing are transforming the size, location,  general make-up as well as income and expenditure of households around the globe, with diverse implications for governments and companies. Households insights can help identify the decision-making processes and consumption tastes of different household groups and types within a country, and assess household appliance and digital readiness that is key for formulating market technology and internet strategies.

Business Dynamics: A stable and competitive business environment is vital to operate efficiently and attract inward investment. Businesses can assess these factors alongside challenges such as corruption, political instability and terrorism, also gain insight into business operating environment and make strategic investment decisions. Transport infrastructure, ICT readiness and labour force dynamics will also identify potential issues with a supply chain and the level of workforce skills.

Commodities: Insights on key sectors directly related to the environmental commodities of a country such as energy, water, pollution, environmental resilience, forest and biodiversity and food and agriculture help businesses to make strategic decisions in relation to environmental and commodities trends, improve brand reputation and ensure long-term operations while ultimately growing the bottom line.

The briefings cover 103 countries and identify topics of crucial interest to planners, marketers and researchers.

Economy, Finance and Trade: Ethiopia

HEADLINES

Ethiopia shows strong GDP growth, as stability improves
While declining, inflation remains high, with the vulnerable population affected the most
Strong export gains, but Ethiopia faces headwinds from US tariffs
Ethiopia targets fiscal stability amid deepening humanitarian needs
Chart 1 Economic Landscape of Ethiopia 2024-2029
Chart 2 Real GDP Growth in Ethiopia 2010-2029
Chart 3 GDP Size and Growth 2019-2029
Chart 4 Gross Value Added by Sector in Ethiopia 2024
Chart 5 Domestic Demand 2024 and Period Growth 2019-2024
Chart 6 Productivity 2019/2024
Chart 7 Productivity by Sector in Ethiopia 2024 and CAGR 2019-2024
Chart 8 Monetary Landscape of Ethiopia 2024
Chart 9 Inflation 2019-2029
Chart 10 Average Inflation 2019-2029
Chart 11 Interest Rates in Ethiopia 2019-2026
Chart 12 Exchange Rates 2019-2026
Chart 13 Money Supply Growth and Money Velocity in Ethiopia 2019-2026
Chart 14 Foreign Trade Landscape of Ethiopia 2024
Chart 15 Exports and Export Price Index in Ethiopia 2019-2024
Chart 16 Exports by Commodity in Ethiopia 2024
Chart 17 Top 10 Export Destinations 2024 and Period Growth 2019-2024
Chart 18 Imports and Import Price Index in Ethiopia 2019-2024
Chart 19 Imports by Commodity in Ethiopia 2024
Chart 20 Top 10 Import Origins 2024 and Period Growth 2019-2024
Chart 21 Investment Landscape of Ethiopia 2023-2024
Chart 22 Foreign Direct Investment Inflows and FDI intensity 2024
Chart 23 Foreign Direct Investment Inflows in Ethiopia 2019-2024
Chart 24 Gross Fixed Capital Formation in Ethiopia 2019-2026
Chart 25 Government Budget Landscape of Ethiopia 2024
Chart 26 Public Debt 2024
Chart 27 Government Revenue 2024
Chart 28 Government Expenditure 2024
Chart 29 Government Expenditure by Economic Type in Ethiopia 2024
Chart 30 Government Expenditure by Function in Ethiopia 2024 and Period Growth 2019-2024
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