Ethiopia has revised the estimated size of its 2024/25 economy upward by 59.2% to $201.42 billion after rebasing its national accounts.
The government adopted 2024/25 as the new reference year, replacing the 2015/16 base previously used to calculate gross domestic product.
Updated measure captures newer sectors
Figures released at an official launch in Addis Ababa put GDP for 2024/25 at 24.03 trillion birr, equivalent to $201.42 billion. The government estimates the economy reached 31.86 trillion birr, or $210.7 billion, in 2025/26.
The Ethiopian News Agency reported that the revised framework incorporates structural changes including digital financial services, modern trade, industry and mining. The Ministry of National Strategy said the exercise also drew on agricultural, business and household surveys.
Reuters independently reported the 59.2% upward revision after reviewing the government presentation.
What rebasing means
GDP rebasing updates the prices, industries and economic activity used to calculate the size of an economy. It can provide a more current picture when new sectors have developed or older estimates no longer capture activity accurately.
The revision does not mean Ethiopia produced 59.2% more goods and services overnight. It changes how existing economic activity is measured.
A larger GDP figure can reduce debt-to-GDP and tax-to-GDP ratios mathematically, even when the underlying debt stock or tax revenue has not changed. Ethiopia is working to complete a long-running external debt restructuring, making the revised ratios particularly significant.
Government plans five-year updates
Officials said Ethiopia intends to repeat the rebasing exercise every five years and use the revised statistics for budgeting, debt assessment, investment planning and revenue policy.
The official presentation said the revised accounts follow the internationally recognised 2008 System of National Accounts. The precise effects on Ethiopia’s debt negotiations will depend on how creditors and international institutions assess the new data.
Featured image: Ethiopian Prime Minister Abiy Ahmed in a BaretaNews archive photograph. The image is a file photograph and does not depict the GDP launch.
