ADDIS ABABA, June 12 (Xinhua) — The Ethiopian government announced on Thursday that the country’s economy is projected to grow by 10.1 percent in the upcoming 2026/2027 Ethiopian fiscal year, which will start on July 8.
Ethiopian Finance Minister Ahmed Shide made the remarks while presenting a record government budget of over 2.33 trillion Ethiopian birr (about 14.84 billion U.S. dollars) to the House of Peoples’ Representatives, the lower chamber of the country’s parliament.
He attributed the projected growth to anticipated positive performance across key economic sectors, such as exports, foreign direct investment, and improved agricultural productivity.
According to the finance minister, the industry sector is projected to grow by 12.6 percent, while the agriculture and service sectors are expected to expand by 7.6 percent and 9.9 percent, respectively.
He said that the East African country’s economy is on track to achieve the projected 10.2 percent growth during the current 2025/2026 fiscal year.
Noting that the country’s economy grew by an average of 6.8 percent annually between 2020 and 2024, and a 9.2 percent growth last fiscal year, Shide said this year’s 10.2 percent economic growth will place the East African country “at the forefront of the world’s fastest-growing economies.”
Meanwhile, the finance minister told members of the parliament that the proposed annual federal government budget, which marks a notable increase compared to the current fiscal year’s budget of about 1.93 trillion birr, was prepared by taking into account the impacts of the Middle East conflict on Ethiopia’s economy.
