Ethiopia has become Africa’s fifth-largest economy after a GDP rebasing increased its measured gross domestic product to $210.7 billion for the 2025/26 fiscal year. The revised ranking places the country behind South Africa, Egypt, Nigeria, and Algeria in the continent’s GDP rankings. Ethiopia’s 2024/25 GDP was also recalculated at $201.4 billion, representing a 59.2% increase over the previous estimate. Officials stressed that the adjustment reflects improved measurement rather than a comparable surge in actual economic activity. The new national accounts use 2024/25 as their base year, replacing a series built 2015/16. They incorporate updated census and household survey findings, as well as information from state-owned enterprises and nonprofit institutions. The government says the changes should improve economic planning and strengthen confidence among investors and development partners.