Ethiopia's debt-to-GDP ratio drops as economy grows

ADDIS ABABA, Jan. 26 (Xinhua) -- Ethiopia's debt-to-gross domestic product (GDP) ratio has fallen to 13.7 percent from 30 percent some years ago, according to Ethiopian Minister of Planning and Development Fitsum Assefa.

The minister said the East African country has paid back a 10-billion-U.S.-dollar loan over the past five years by enhancing its income-generating capacity, the state-run Ethiopian News Agency reported on Sunday.

Noting that the country had been debt-ridden until recently, Assefa attributed the success to a comprehensive macroeconomic reform the government has implemented in recent years.

She said Ethiopia has registered "remarkable" economic growth by overcoming multiple challenges, including the impacts of the COVID-19 pandemic, natural disasters, climate change, and security issues.

The minister pointed out that such a good achievement has placed Ethiopia among countries that have shown substantial progress globally in recent years. Ethiopia has also witnessed a rise in foreign direct investment, averaging more than 3 billion U.S. dollars annually.

According to the minister, the country has become the first in East Africa, the third in sub-Saharan Africa, and the fifth in Africa in terms of economic size. ■