Ethiopia: PM Abiy Tells Parliament Ethiopia’s Growth ‘No Longer Just Numerical,’ Vows ‘Double-Digit’ Expansion This Fiscal Year
Addis Abeba — Prime Minister Abiy Ahmed (PhD) told members of the House of Peoples’ Representatives (HoPR) on Tuesday that Ethiopia will “undoubtedly register double-digit growth this year,”emphasizing that the country’s economic progress is now “tangible, visible, and palpable,”unlike in previous years when growth was largely numerical.
The Prime Minister made the remarks while responding to questions from lawmakers during the second regular session of the HoPR’s fifth year of its working term, held on 28 October 2025.
Addressing economic issues raised by parliamentarians, Abiy reiterated that this year’s growth can be “seen, felt, and measured” in the real economy. “A person with a good nose will smell [the growth] when moving in the city; a person with good eyes can see it; and a person with good ears can understand it by listening,” he said. “Since Ethiopia’s growth is not questionable, you are only required to use your eyes, nose, or ears.”
The Prime Minister stated that “by 2040, Ethiopia’s economy will at least become the second largest in Africa,”further asserted that”by 2044, Ethiopia’s economy will become the largest in Africa; we will achieve this — no one can stop us.”
Abiy said that the inflation rate for October had eased to 11.7 percent–the lowest level recorded since the government began its reform program–marking what he described as a key step toward macroeconomic stability.
He also stated that, for the first time in Ethiopia’s history, “exports of goods have yielded better results than exports of services.”According to him, $8.3 billion was earned from the export of goods last year, compared to $8.1 billion from services.
The Prime Minister credited ongoing economic reforms for stabilizing the financial sector, saying the measures “saved the Commercial Bank of Ethiopia (CBE) from collapse through debt restructuring.”He added, “The collapse of the Commercial Bank means the demise of Ethiopia’s financial sector; the reform can be considered to have rescued Ethiopia’s financial sector.”
Highlighting strong revenue performance, Abiy said the previous fiscal year saw Ethiopia’s highest-ever earnings, including $7.4 billion in remittances. He added that “billions of dollars were saved through import substitution with domestic products,”which, according to him, helped the country’s foreign reserves grow tenfold.
The Prime Minister further noted that Ethiopia’s shift from an agriculture-led economy to a diversified model encompassing industry, mining, tourism, and technology is producing tangible results. He emphasized that the government’s “five-sector” strategy is aimed at building a resilient, multi-dimensional economy.
Abiy also disclosed that the government spent around 440 billion birr on subsidies during the fiscal year.
Regarding the mining sector, he said reforms are being implemented to address irregularities in the licensing system, noting that many former license holders were acting as brokers rather than actual developers. He added that the sector’s contribution to GDP has now reached one percent.
By Addis Standard.
