The International Monetary Fund states that Kenya will surpass Ethiopia to become the largest econom

According to the latest forecast from the International Monetary Fund (IMF), Kenya is expected to surpass regional competitor Ethiopia and become the largest economy in East Africa by 2025. The International Monetary Fund predicts that Kenya's Gross Domestic Product (GDP) will reach 132 billion US dollars, higher than Ethiopia's estimated 117 billion US dollars. This shift highlights the different policy choices and macroeconomic conditions of the two countries, driving a significant adjustment in the regional economic landscape. Ethiopia recently devalued its currency, the Birr, by over 55%, which helped the country secure $3.4 billion in support from the International Monetary Fund (IMF) and $16.6 billion in funding from the World Bank in 2024 to restructure debt and stabilize the economy. However, this measure has also led to a sharp increase in inflation and import costs, putting additional pressure on a country that is already struggling to cope with internal conflicts and the impact of climate change.