AFFAIRES | AFFAIRES 
APA -Addis Ababa(Ethiopia)
20 January 2025 | 09:53
Ethiopia’s nominal GDP, measured in US dollars, fell drastically from $207 billion in June 2024 to $100 billion by September 2024, according to Ethiopia’s Ministry of Finance’s quarterly government debt report released over the weekend.
This significant decline is attributed to the introduction of a market-based foreign exchange trading system in July 2024, the report indicated.
The devaluation of the Ethiopian birr led to a sharp reduction in the country’s GDP when converted to dollars.
“The GDP figure, which stood at $207 billion a month before the currency adjustment in June 2024 dropped to $100 billion within three months,” the report noted.
As a result of these changes, Ethiopia’s total public debt-to-GDP ratio rose from 32.9 percent in June 2024 to 50.3 percent by September 2024.
The government’s external debt grew from $28.8 billion to $31 billion during this period, fueled by the exchange rate adjustment and new loans totalling $1.6 billion from the International Monetary Fund (IMF) and the World Bank.
The report highlights that the external debt stock increased by 7.5 percent and the external debt-to-GDP ratio more than doubled, rising from 13.9 percent in June 2024o 30.9 percent by September 2025. This exceeded the 30 percent ceiling recommended by the IMF and the World Bank for low-income countries.
Similarly, the domestic debt-to-GDP ratio also surpassed the set thresholds. However, the government’s domestic debt in dollar terms saw a significant decline following the devaluation.
MG/abj/APA