Kenya Set to Overtake Ethiopia as East Africa’s Largest Economy – IMF
According to the International Monetary Fund’s (IMF) latest projections, released on April 23, 2025, Kenya is poised to surpass Ethiopia as East Africa’s largest economy.
The IMF forecasts Kenya’s GDP to hit $117.6 billion in 2024, ahead of Ethiopia’s $113.6 billion. This shift is driven by Kenya’s strong post-pandemic recovery, particularly in services, digital innovation, and agriculture.
“Kenya has shown strong resilience and economic stability,” said IMF Senior Economist Maria Gonzalez.
Meanwhile, Ethiopia’s growth has slowed due to internal conflict, forex shortages, and inflation.
Despite its larger population, Ethiopia’s economic momentum has been hindered in recent years.
Kenya’s fiscal reforms, investment in infrastructure, and regional trade efforts have further strengthened its economic position.
The IMF will release its next regional outlook in October 2025.
About The Author
