Addis Ababa:Ethiopia's newly completed Gross Domestic Product (GDP) rebasing will provide a stronger foundation for the country's long-term development ambitions, particularly its vision of building a prosperous nation, Minister of National Strategy Bereket Fesehatsion said. Ethiopia unveiled its updated GDP figures today as part of efforts to modernize economic measurement and reflect structural changes in the economy.
According to Ethiopian News Agency, with the 2017 Ethiopian fiscal year (2024/25) as the new base year, the country's GDP reached 24.03 trillion Birr (201.42 billion USD). This figure further rose to 31.86 trillion Birr (210.7 billion USD) in the 2018 Ethiopian fiscal year (2025/26).
Speaking at the launch of the updated GDP rebasing results, Minister Bereket highlighted that the revised measurement system provides a more accurate picture of the country's economic structure by incorporating emerging economic activities and previously underrepresented sectors. He emphasized the importance of moving beyond quantitative growth toward building a productive economy, which would help generate employment, strengthen domestic production capacity, and reduce excessive dependence on primary commodities.
The minister further emphasized that reliable economic statistics are essential for improving policy formulation, budget allocation, investment decisions, and economic planning. He noted that the revised GDP framework would provide a more accurate benchmark for assessing national economic objectives, including foreign trade, revenue generation, investment, and employment creation.
The selection of the 2017 Ethiopian fiscal year as the new base year was based on its relative macroeconomic stability, declining inflation, and the availability of comprehensive statistical data. The rebasing process incorporated findings from various sources, including the agricultural census, the economic establishments census, and household surveys, enabling the country to update its national accounts in line with contemporary economic realities.
Minister Bereket stated that the exercise was conducted under the leadership of Ethiopian professionals, with technical assistance from the International Monetary Fund (IMF), to ensure alignment with the 2008 System of National Accounts and other international standards. He also highlighted the government's efforts to strengthen national statistical capacity through the recruitment and training of young graduates to ensure the sustainability of the process.
To maintain the reliability and relevance of national economic statistics, the government plans to institutionalize GDP rebasing every five years. The minister concluded that the updated measurement system would serve as a new foundation for Ethiopia's long-term development ambitions, particularly its vision of building a prosperous country by 2050 through strengthened domestic capacity and improved living standards for citizens.
