Ethiopia has revised the size of its economy up by nearly 60 per cent after rebasing its national accounts, with the government saying the country is now Africa's fifth-largest economy. The revised figures, announced on 4 November, put Ethiopia's economy at $210.7 billion for the 2025/26 fiscal year.

What the revision changes

The rebasing lifted the 2024/25 economy by 59.2 per cent to $201.42 billion after the base year used to calculate output was shifted from 2015/16 to 2024/25. The exercise, which began in January 2026 and finished in September, was designed to capture activity that the old framework missed, including digital financial services, ride-sharing platforms and large solar installations. The government says the new figures place Ethiopia behind South Africa, Egypt, Nigeria and Algeria, and ahead of Morocco and Kenya.

A statistical change, not a growth spurt

The revision is a change in measurement rather than an equivalent expansion in actual production. Ethiopia's economy was already growing — the government estimates real growth of 7.7 per cent for 2025/26 — but the rebasing records output that was taking place without being fully counted. The Ministry of National Strategy said the figures were drawn from agricultural and economic censuses, household surveys and administrative records, with technical support from the International Monetary Fund.

Why it matters for debt

The bigger measured economy lowers Ethiopia's debt-to-GDP and tax-to-GDP ratios, which matters as the country tries to conclude a years-long external debt restructuring. Holders of its $1 billion Eurobond approved a preliminary restructuring agreement in August. The government says clearer data should also improve credit ratings and support foreign investment.