Ethiopia’s nominal GDP, measured in US dollars, fell from $207 billion in June 2024 to $100 billion in September 2024, according to the Ethiopian Finance Ministry’s quarterly public debt report released over the weekend .
The drastic decline of more than 50% in Ethiopia’s nominal GDP between June and September 2024 is attributed to the introduction of a floating exchange rate system in July 2024, the report said. The devaluation of the Ethiopian birr has led to a sharp reduction in the country’s GDP when converted to dollars.
« GDP, which stood at $207 billion a month before the June 2024 monetary adjustment, fell to $100 billion in three months », specifies the report.
As a result of these changes, Ethiopia’s public debt-to-GDP ratio increased from 32.9% in June 2024 to 50.3% in September 2024.
The government’s external debt increased from $28.8 billion to $31 billion during this period, driven by the exchange rate adjustment and new loans totaling $1.6 billion from the Fund. International Monetary Fund (IMF) and the World Bank.
-The report highlights that the outstanding external debt increased by 7.5% and the external debt-to-GDP ratio more than doubled, from 13.9% in June 2024 to 30.9% in September 2025. This This figure exceeds the 30% ceiling recommended by the IMF and the World Bank for low-income countries.
Likewise, the domestic debt/GDP ratio has also exceeded the set thresholds. However, the government’s domestic debt in dollars fell significantly following the devaluation.
MG/abj/lb/te/Sf/APA
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