Ethiopia's Multisectoral Economic Growth Would Surpass 8.4 pc Projection: PM Abiy

Addis Ababa, July, 3, 2025 (ENA)— Ethiopia is on track to significantly surpass its projected 8.4 percent economic growth for the current fiscal year, Prime Minister Abiy Ahmed revealed.

The PM reported that Ethiopia's macroeconomic reform and the "Homegrown Reform" initiatives have yielded results beyond expectations.

Responding to questions by members of the parliament today, the prime minister stated that despite a landscape of extensive global challenges, Ethiopia achieved a robust 8.1 percent economic growth last year, and this year's performance is anticipated to surpass the initial targets, signaling a time of Ethiopia's resurgence.

The Prime Minister attributed this exceptional performance to multisectoral milestones made across several key sectors.

He specifically highlighted the multisectoral progress seen in agriculture, industry, mining, the service sector, and finance as pivotal to the country's economic momentum.

Delving into details of each sector, the agricultural sector registered 6.1 percent growth and it is expected to show significant growth.

The nation has seen 23 million Ethiopians successfully graduated from the safety net program, underscoring significant progress in food security and rural development.

The prime minister stated that the industrial sector, a crucial contributor to overall economic expansion, was projected to grow by 12.8 percent.

Under the "Ethiopia Tamirt" (Made in Ethiopia) initiative, the capacity of the manufacturing factories has impressively risen from 47 percent few years ago to 65 percent, he said, adding the cement manufacturing sector alone has grown by a notable growth of 16 percent in production.

The mining sector, particularly gold exports, has witnessed a dramatic surge, according to the primer.

He also said from just 4 tons last year, gold exports have soared to 37 tons this year, translating into a substantial revenue jump from 300 million USD to 3.5 billion USD.

The service sector has registered 8.1 percent growth this year, buoyed by a thriving tourism industry.

Ethiopia successfully hosted over 150 international conferences, attracting 1.3 million tourists, Prime Minister Abiy elaborated.

He added that this growth is largely credited to improved visa processing, the expansion of hotels, the development of new destination sites, and corridor development.

Ethiopian Airlines, a national flag carrier, further bolstered connectivity by launching flights to an additional 13 destinations this year, transporting an impressive 19 million passengers.

According to the Prime Minister, the financial sector has also experienced a significant revitalization, with loans increasing by 75 percent this year alone. A landmark achievement in digital finance has seen the number of mobile banking customers reach 55 million within three years.

For the first time in Ethiopia's history, digital transactions have eclipsed cash transactions, reaching a staggering 12.5 trillion Birr, PM Abiy said.

Furthermore, 11 million small scale borrowers collectively accessed 24.5 billion Birr loans through virtual platforms.

He also elaborated that the performance of Ethiopia's foreign reserve has been particularly strong.

Exports, initially planned for 5.1 billion USD, have exceeded 8.1 billion USD this year, a significant leap from last year's 3.8 billion USD. This represents an increase of over 3 billion USD dollar from the target and more than double last year's performance, PM Abiy Ahmed said.

According to him, remittance inflows have also been robust, exceeding 7 billion USD. The country successfully attracted 4 billion USD in Foreign Direct Investment (FDI), and the service sector alone generated 8.3 billion USD in foreign exchange. Cumulatively, the total foreign exchange obtained from all sectors, including loans and aid, reached 32 billion USD this year, a considerable increase from 24 billion USD last year.

The trade balance deficit has also improved by 4 billion USD, and for the first time in over a decade, the balance of payments has become positive. While imports amounted to 19 billion USD, inflation showed a moderate improvement, he said.

Regarding global conditions and aid, the Prime Minister acknowledged that the global trade system has been disrupted by pandemic and wars and unforeseen circumstances.