The Ethiopian government has set ambitious economic targets for its next fiscal year.
Speaking before the House of People's Representatives on Tuesday, Finance Minister Ahmed Shide announced that the country's economy is expected to grow by 10.1% during the 2026/27 fiscal year, which begins in July.
According to the minister, this forecast reflects Ethiopia's strong economic trajectory. The country recorded an average annual growth rate of 6.8% between the 2018/19 and 2023/24 fiscal years, before reaching 9.2% in 2024/25. For the current fiscal year (2025/26), the government expects growth of 10.2%, driven by the economic reforms implemented in recent years.
Ahmed Shide also emphasized that the 2026/27 federal budget prioritizes protecting the most vulnerable households, advancing structural reforms, and promoting more inclusive economic growth.
The budget also includes measures aimed at curbing inflation, reducing macroeconomic imbalances, and strengthening public finances through prudent fiscal management.
To support these priorities, the government has submitted a record federal budget of $14.5 billion for the 2026/27 fiscal year, the largest in the country's history, to help drive Ethiopia's economic ambitions.
