Ethiopia is preparing to introduce quarterly Gross Domestic Product reporting as part of efforts to modernize its national economic statistical system and improve fiscal transparency, following the country's recently completed GDP rebasing exercise. The shift from annual reporting will require significant improvements in how economic and financial data are collected, classified and managed across federal and regional institutions. The National Bank of Ethiopia has set the new GDP base year as 2024/25, replacing the previous reference framework to reflect structural changes in the economy. Under the revised framework, Ethiopia's GDP was valued at 24.03 trillion birr, or 201.42 billion dollars, in the 2024/25 fiscal year, expanding to 31.86 trillion birr, or 210.70 billion dollars, in the 2025/26 fiscal year.
The initiative will also modernize Government Finance Statistics and align national accounting practices with internationally recognized statistical standards. According to the Ministry of Finance, one priority is to strengthen Government Finance Statistics by revising historical records and ensuring future data are produced under an updated and standardized framework. A major component of the reform involves adopting the International Standard Industrial Classification of All Economic Activities, which provides a common system for categorizing economic activities and is expected to improve the level of detail available on government spending and sectoral contributions to national output. The exercise will cover both federal and regional administrations, extending improvements beyond central government financial accounts to establish a more comprehensive national statistical system.
Minister of Finance Fitsum Assefa said the government would build on reforms introduced through the GDP rebasing process to improve the quality and consistency of economic and public finance information. She emphasized that more accurate economic data would enable the government to assess sectoral performance more effectively and formulate policies based on the country's actual economic conditions. The Ministry of Finance will work with the Ministry of Planning and Development and other relevant institutions to ensure that financial records are properly classified and integrated into the national economic accounts.
The transition to quarterly GDP reporting requires more frequent and detailed information than the traditional annual system. The government is therefore working to synchronize data collection across revenue authorities, sector ministries, and national planning institutions to ensure information needed for quarterly economic measurement is available on time. According to Feleke Demissie, Executive Director of National Economic Accounts Statistics at the Ministry of Planning and Development, GDP rebasing is necessary because the structure of an economy changes over time. International statistical guidelines generally recommend updating the GDP base year every five years to ensure economic measurements reflect current production patterns, emerging industries and changes in economic activities.
Feleke noted that bringing the reference year closer to current economic conditions enables statisticians to incorporate previously underrepresented activities and reassess the contribution of different sectors to the economy. He explained that over a five-year period, new economic activities and emerging sectors integrate into the national economy, and continuing to measure output against an outdated baseline distorts the country's true economic position. The rebasing exercise is expected to improve national economic planning, strengthen fiscal and monetary policymaking, and enhance domestic revenue mobilization.