Ethiopia foreign debt declines to 25 percent

Ethiopia’s foreign debt has declined over the past two years from 31 percent of its GDP to 25 percent, Prime Minister Abiy Ahmed said.

Explaining the outcomes of his economic reforms, Prime Minister Abiy on Monday mentioned percentage of Ethiopia’s debt to GDP ratio as an example to the members of parliament. He stated that when he took power two years ago, Ethiopia was among the high risk countries two years ago with total debt (including from domestic borrowings) amounting to 59 percent of its GDP.

“Now we managed to reduce the foreign debt of Ethiopia from 31 percent of GDP to around 25 percent. As a result, we managed to bring Ethiopia to a moderate debit country from high risk,” Abiy told the MPs. He stated that when he came to power the GDP of Ethiopia was around $86 billion and now surpasses $100 billion.

Per capita income two years ago was $880 and now it has surpassed $1,000, according to Abiy. The premier also mentioned competition of industrial parks and hydropower dams such as, Genale Dawa hydro dam, as examples of the success of his administration.