Ethiopia's General Government Debt (% of GDP), 1990-2022

Ethiopia's government debt as a percentage of GDP has fluctuated significantly over the decades, shaped by economic reforms, political challenges, and external financial assistance. In the early 1990s, debt levels were high, peaking at 144.79% in 1994 due to the economic strain of the Ethiopian Civil War and post-war reconstruction. This period marked significant borrowing to rebuild infrastructure and stabilize the economy.

Debt levels began to decline from the late 1990s, reaching 32.25% in 2008, largely due to debt relief initiatives under the Heavily Indebted Poor Countries (HIPC) program and improved fiscal discipline. However, from 2010 onward, debt levels gradually increased, peaking at 58.39% in 2018. This rise reflects Ethiopia's aggressive public investment in infrastructure, particularly in energy and transportation, under its Growth and Transformation Plans. By 2022, debt had reduced to 46.37% of GDP, signaling efforts to balance development goals with fiscal sustainability amidst global economic challenges.