Real GDP growth fell to 5.

3% in 2022 from
5.6% in 2021 but remained above East Africa's
average (4.7% in 2021 and 4.4% in 2022).
Supply-side drivers of growth were industry
and services, and demand-side drivers were
private consumption and investment. Inflation
rose to 34% in 2022 from 26.6% in 2021.
GDP is projected to grow 5.8% in 2023 and
6.2% in 2024, driven by industry, private
consumption, and investment.
Inflation is projected to decline to 28.1% in 2023
and 20.1% in 2024, following the peace
dividend.
The fiscal deficit is projected to grow to 3.1% in
2023 and 2.5% in 2024 due to the expected
increase in government revenue driven by
domestic resource mobilization improvements,
implementation of the fiscal consolidation
strategy,
Over $316 billion is required to finance
Ethiopia’s adaptation (87% of the total) and
mitigation (13%) targets for 2021–30. However,
only $63.2 billion of financing is expected to be
mobilized from domestic sources, with the rest
from international sources. The average
financing gap for 2021–30 is about $33.1 billion
a year, hampering Ethiopia’s ability to build
climate resilience.