Economy
IMF Sees Ethiopia’s Growth Slowing to 7.8 Percent as Inflation Rises in 2027
BirrMetrics · 4 hours ago · Read the Full Story on BirrMetrics
AI SUMMARY
The International Monetary Fund projects Ethiopia's economic growth to moderate to 7.8 percent in 2027 as inflation accelerates and external pressures persist.
- The International Monetary Fund released its latest World Economic Outlook on October 13.
- Ethiopia's real GDP is expected to expand by 9.2 percent in 2026 before moderating to 7.8 percent in 2027.
- Average consumer price inflation is projected to decline to 11.7 percent in 2026 before rising to 12.3 percent in 2027.
- Ethiopia's projected 2026 growth of 9.2 percent is more than twice the Sub-Saharan African regional average of 4.5 percent.
- The country's current-account deficit is projected to widen to 2.5 percent of GDP in 2026 before narrowing to 1.3 percent in 2027.
- Ethiopia is implementing extensive macroeconomic reforms, including a market-determined foreign exchange regime and external debt restructuring under the G20 Common Framework.
- Global economic growth is projected at 3.1 percent in 2026 and 3.4 percent in 2027, amidst risks from geopolitical tensions and elevated energy prices.
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