Addis Ababa, Jun 9 (Prensa Latina) – Ethiopia has emerged as the fifth largest economy in Africa in 2024, with a Gross Domestic Product (GDP) amounting to USD 205.1 billion. This significant achievement, noted by the International Monetary Fund (IMF), positions Ethiopia globally at the 57th place in terms of GDP. Ahead of Ethiopia are South Africa, Egypt, Algeria, and Nigeria, ranked first to fourth respectively among African nations.
Ethiopia’s economic growth has been driven by substantial reforms and strategic investments across various sectors. The government’s focus on infrastructural development, particularly in transport and energy, has played a crucial role. Additionally, agricultural modernization and increased industrial output have contributed to the GDP growth. The expansion of industrial parks and improvements in the business environment have also attracted foreign direct investment, further bolstering economic performance.
The IMF’s report highlights Ethiopia’s resilience in the face of global economic challenges, including the impacts of the COVID-19 pandemic and geopolitical tensions affecting trade. The country’s diversified economy, with strong sectors in agriculture, manufacturing, and services, has helped mitigate risks and sustain growth.
Looking forward, Ethiopia aims to continue its upward trajectory by enhancing productivity and competitiveness. The government plans to focus on digital transformation, improving access to finance for small and medium-sized enterprises (SMEs), and fostering innovation. These efforts are expected to create jobs, reduce poverty, and drive sustainable development.
Despite these positive trends, challenges remain. Ethiopia faces issues such as political instability, ethnic conflicts, and climate change impacts that threaten to undermine economic progress. Addressing these challenges through inclusive policies and ensuring political stability will be crucial for maintaining growth momentum.
Sources:
Prensa Latina
IMF Office in Ethiopia
