Ethiopia’s external debt-to-GDP ratio falls to 13.7%

Addis Ababa, April 12, 2025 (FMC) – Ethiopia’s external debt burden has significantly eased, with the debt-to-GDP ratio now standing at 13.7%, according to a macroeconomic report presented during the official launch of the 2017 E.C. nine-month performance review session.

Prime Minister Abiy Ahmed opened the review earlier today, with a comprehensive briefing on the country’s macroeconomic landscape kicking off the session.

The presentation indicated that the government’s ongoing reform program has contributed to a more stable macroeconomic environment, supporting positive trends in savings, investment, and external financial indicators.

The review showed that the implementation of a new foreign exchange regime has led to increased remittance inflows and a growth in foreign currency reserves. Export earnings have also improved across key sectors such as agriculture, mining, industry, and electricity. Top-performing export items include coffee, gold, pulses, oilseeds, flowers, and electricity.

In terms of growth, the report noted that the global economy is projected to expand by 3.3% in 2025, with Ethiopia’s economy forecasted to grow by 8.4%. Sub-Saharan Africa is also expected to follow a generally positive trajectory.

The session also covered the progress of major infrastructure and development projects. The Grand Ethiopian Renaissance Dam (GERD) has reached 98.66% completion, with six of its generating units now operational.

Concluding the presentation, government officials highlighted Ethiopia’s efforts toward inclusive and sustainable development, noting that these goals remain central to the broader reform agenda.

A video posted on the Office of Prime Minister social media page shows that this morning’s session was attended by ministers from all sectors of the government.