Ethiopia has overtaken Morocco to become Africa’s fifth-largest economy, after a major GDP rebasing lifted its measured economic output to $210.7 billion for the 2025/26 fiscal year.
The Horn of Africa nation now joins South Africa, with a GDP of $489.1 billion; Egypt, at $442.9 billion; Nigeria, at $386.7 billion; and Algeria, at $331.9 billion, among the continent’s five largest economies.
The rebasing increased the country’s previously measured 2024/25 economy by 59.2%, taking its GDP to 24.03 trillion birr, equivalent to $201.4 billion. The following fiscal year’s GDP was put at $210.7 billion.
Fitsum Assefa Adela, Ethiopia’s Minister of Planning and Development, announced the figures following the launch of the new GDP series at a national forum organised by the Ministry of National Strategy.
She said the revised figures place Ethiopia as Africa’s fifth-largest economy and the third-largest in sub-Saharan Africa.
“The rebasing provides internationally comparable statistics, strengthens investor, rating agency and development partner confidence, and offers a more robust evidence base for fiscal policy, budgeting and development planning.” she added.
Statistical overhaul adds billions to Ethiopia’s measured economy
The new GDP series uses 2017 Ethiopian Fiscal Year (2024/25) as its base year, replacing the previous series built around 2008 EFY (2015/16).
The government said the older methodology no longer adequately captured changes in the economy, including the expansion of sectors and emerging activities such as digital finance and services.
The revised estimates draw on recent national agriculture and economic establishment censuses, an integrated household survey and administrative records. For the first time, the calculations also incorporate data from federal and regional state-owned enterprises and non-profit institutions serving households.
The 59.2% increase represents a statistical revision of the economy’s measured size rather than equivalent growth in actual economic output. By updating its data sources and accounting for activities that were previously underrepresented, Ethiopia has obtained a larger estimate of its national production.
The government says the new series will provide a stronger evidence base for fiscal policy, budgeting and development planning, while improving the quality of economic information available to investors, rating agencies and development partners.
The change also reshapes Ethiopia’s position in continental economic comparisons. Its newly reported $210.7 billion economy places it ahead of Morocco in the top-five ranking, although comparisons across countries should account for differences in fiscal and calendar-year reporting periods.
Source: africa.businessinsider.com
