The European Union Delegation to Ethiopia has released its latest economic and trade update, covering developments from April to July 2025. The report offers a candid overview of Ethiopia’s recovery trajectory, highlighting strong GDP growth, a sharply reduced trade deficit, and major reforms in foreign exchange, taxation, and investment policy. While headline figures show progress, including 8.1% GDP growth and a 67% drop in the trade deficit, structural challenges persist, from inflation and unreliable data to fuel shortages and weak productivity. This comprehensive analysis provides essential context for understanding Ethiopia’s shifting economic landscape and the road ahead for policymakers, investors, and development partners.
