Government outlines key reforms and initiatives for sustainable growth, focusing on agriculture, manufacturing, and services.
KEYIR NEWS - Ethiopia expects its economy to grow by 9 percent in the upcoming 2025/26 budget year. This was announced at a national forum held in Addis Ababa. The forum reviewed the 2024/25 Budget Year Implementation Report and outlined key areas for 2025/26 .
The event was organised by the Ministry of Planning and Development. It included responsible federal institutions and senior government officials.
Speaking at the forum, State Minister Tirumar Abate highlighted the significance of 2024/25. She described it as a year of wide-ranging policy reforms.
Tirumar said many of the reforms targeted the macroeconomic sector. Several major achievements were recorded.
She noted that 2024/25 saw the completion of key national projects. These included infrastructure, public services, and energy initiatives.
According to the Ministry, the 2025/26 focus will reflect global economic conditions. Planning will consider both internal capacity and international dynamics.
Tirumar explained that the 2025/26 development priorities align with macro trends. These include rising global inflation, commodity prices, and interest rates. The government will prioritise stability, production, and export earnings. It will also strengthen public-private partnerships.
Officials said the 9 percent growth forecast is based on sectoral targets. Key contributors include agriculture, manufacturing, and services.
Agricultural productivity will be boosted through irrigation and technology. The industry sector will benefit from continued support to industrial parks.
Service growth will be driven by digitalisation and finance sector expansion. Tourism and logistics are also expected to grow. Tirumar stated that strong implementation and coordination will be critical. She urged institutions to focus on timely execution.
Monitoring mechanisms will be improved for better transparency and results. The Ministry pledged to support institutional performance. The forum also discussed inflation control and job creation. Both remain top government priorities in 2025/26.
Public investment will focus on energy, health, and rural connectivity. These are seen as drivers of inclusive growth. Tirumar emphasised that macroeconomic stability will remain central. Reforms will continue to address budget discipline and debt management.
She highlighted the need for data-driven planning. Evidence-based decision-making will shape future policies. The government will also expand social protection. Safety nets will target vulnerable populations.
Capacity building and institutional reform will support service delivery. Decentralisation efforts will also be strengthened. Officials acknowledged global risks to the economy. These include climate shocks, trade tensions, and currency volatility.
The Ministry said resilience planning is underway. The goal is to safeguard growth and ensure continuity. Tirumar thanked development partners for their support. She urged continued collaboration with the private sector.
In closing, she called for joint efforts across sectors. Growth, she said, requires discipline, innovation, and unity. The Ministry plans to release a full 2025/26 action plan soon. Stakeholders will align efforts to meet the new targets.