Kenya Overtakes Ethiopia as East Africa's Largest Economy

According to the IMF’s October 2026 World Economic Outlook, Kenya has surpassed Ethiopia to become the largest economy in East Africa in terms of nominal GDP. The shift in ranking is primarily attributed to exchange-rate fluctuations and the depreciation of the Ethiopian birr, rather than slower real economic growth in Ethiopia. While Kenya's economy now holds a higher dollar value, the IMF notes that Ethiopia’s economy continues to expand more rapidly in real terms. The report highlights that currency performance has significantly impacted the comparative dollar value of both nations' outputs.