Kenya is projected to surpass Ethiopia as the largest economy in East Africa in 2025, according to the International Monetary Fund (IMF). The IMF forecasts Kenya’s Gross Domestic Product (GDP) to reach $132 billion in 2025, exceeding Ethiopia’s projected $117 billion.
This shift is attributed to divergent economic trajectories in the two countries. The IMF projects Kenya’s economy to grow at 4.8% in 2025, while other sources project growth between 4.7% and 5.6%. The World Bank projects Kenya’s growth to recover to 4.9% on average during 2025-2027. Ethiopia, while still experiencing growth, faces challenges with high inflation and debt restructuring. The IMF projects Ethiopia’s real GDP growth at 6.6% in 2025, but consumer prices are expected to increase by 21.5%.
Kenya’s anticipated rise to the top of East Africa’s economic ladder reflects its resilience and growth potential. This development marks a significant shift in the region’s economic landscape, driven by Kenya’s diversified economy and strategic policies. 
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