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Ethiopia’s economy in 2025 is marked by an estimated GDP of $145.031 billion and an inflation rate of 20.5%, indicating significant price increases. With a population of 126 million, the country uses the Ethiopian Birr (ETB) as its official currency. The average monthly income in 2025 is projected at 9,500 ETB, reflecting steady but slowing income growth over the past decade.
Income levels in Ethiopia have increased substantially from 2010 to 2025. In 2010, the average monthly income was 3,000 ETB, growing at a rapid pace through the early 2010s, peaking at 15.6% in 2014. However, income growth slowed considerably after 2018, dropping to below 5% in subsequent years and reaching just 1.1% in 2024 and 2025.
Living costs have followed a similar trajectory, rising from 3,000 ETB in 2010 to 9,500 ETB in 2025. While early years saw high growth in expenses, reaching 15.6% in 2014, cost increases slowed significantly after 2019, mirroring the deceleration in income growth.
Housing remains the largest expense category, accounting for 40% of total monthly costs, with housing costs rising from 1,200 ETB in 2010 to 3,800 ETB in 2025. Food costs, which make up 25% of expenses, increased from 750 ETB in 2010 to 2,370 ETB in 2025. While both categories experienced strong price growth in the early years, increases have tapered off in recent years.
Other key expenses include transportation (9%), utilities (4.5%), healthcare (11%), entertainment (7.3%), and miscellaneous costs (10%). The rapid inflation rate in 2025 suggests that further cost increases are likely, putting additional pressure on household budgets.
Overall, while Ethiopia has seen significant economic expansion and rising incomes over the past 15 years, the slowing income growth coupled with high inflation could pose financial challenges for citizens, particularly in affording essential expenses like housing and food.
Let’s take an in-depth look at Ethiopia’s economy, income levels, and living costs from 2010 to 2025. Get detailed insights on rent, food, and other expenses.
Country Overview
| Aspect | Details |
|---|---|
| Capital | Addis Ababa |
| Population | 126 million (2025) |
| Currency | Ethiopian Birr (ETB) |
| Official Language | Amharic |
| GDP (2024)⤤ | $145.031 billion |
| Inflation Rate (2025) | 20.5% |
| Average Monthly Income | 9,000 ETB |
Living Cost Per Month (Per Person) Breakdown (2025)
| Expense Category | Cost (ETB) | Percentage (%) |
|---|---|---|
| Housing | 3,600 | 40% |
| Food | 2,250 | 25% |
| Transportation | 810 | 9% |
| Utilities | 405 | 4.5% |
| Healthcare | 990 | 11% |
| Entertainment | 660 | 7.3% |
| Miscellaneous | 900 | 10% |
| Total | 9,000 | 100% |
Income Per Month (Per Person) (2010-2025)
| Year | Income (ETB) | Growth (%) |
|---|---|---|
| 2010 | 3,000 | – |
| 2011 | 3,400 | 13.3% |
| 2012 | 3,900 | 14.7% |
| 2013 | 4,500 | 15.4% |
| 2014 | 5,200 | 15.6% |
| 2015 | 6,000 | 15.4% |
| 2016 | 6,900 | 15.0% |
| 2017 | 7,900 | 14.5% |
| 2018 | 8,500 | 7.6% |
| 2019 | 8,900 | 4.7% |
| 2020 | 9,100 | 2.2% |
| 2021 | 9,200 | 1.1% |
| 2022 | 9,250 | 0.5% |
| 2023 | 9,300 | 0.5% |
| 2024 | 9,400 | 1.1% |
| 2025 | 9,500 | 1.1% |
Living Cost Per Month (2010-2025) (Per Person)
| Year | Living Cost (ETB) | Growth (%) |
|---|---|---|
| 2010 | 3,000 | – |
| 2011 | 3,400 | 13.3% |
| 2012 | 3,900 | 14.7% |
| 2013 | 4,500 | 15.4% |
| 2014 | 5,200 | 15.6% |
| 2015 | 6,000 | 15.4% |
| 2016 | 6,900 | 15.0% |
| 2017 | 7,900 | 14.5% |
| 2018 | 8,500 | 7.6% |
| 2019 | 8,900 | 4.7% |
| 2020 | 9,100 | 2.2% |
| 2021 | 9,200 | 1.1% |
| 2022 | 9,250 | 0.5% |
| 2023 | 9,300 | 0.5% |
| 2024 | 9,400 | 1.1% |
| 2025 | 9,500 | 1.1% |
Breakdown of Housing & Food Costs (2010-2025)
Housing Cost Per Month (2010-2025)
| Year | Housing Cost (ETB) | Growth (%) |
|---|---|---|
| 2010 | 1,200 | – |
| 2011 | 1,360 | 13.3% |
| 2012 | 1,560 | 14.7% |
| 2013 | 1,800 | 15.4% |
| 2014 | 2,080 | 15.6% |
| 2015 | 2,400 | 15.4% |
| 2016 | 2,760 | 15.0% |
| 2017 | 3,160 | 14.5% |
| 2018 | 3,400 | 7.6% |
| 2019 | 3,560 | 4.7% |
| 2020 | 3,640 | 2.2% |
| 2021 | 3,680 | 1.1% |
| 2022 | 3,700 | 0.5% |
| 2023 | 3,720 | 0.5% |
| 2024 | 3,760 | 1.1% |
| 2025 | 3,800 | 1.1% |
Food Cost Per Month (2010-2025)
| Year | Food Cost (ETB) | Growth (%) |
|---|---|---|
| 2010 | 750 | – |
| 2011 | 850 | 13.3% |
| 2012 | 975 | 14.7% |
| 2013 | 1,125 | 15.4% |
| 2014 | 1,300 | 15.6% |
| 2015 | 1,500 | 15.4% |
| 2016 | 1,725 | 15.0% |
| 2017 | 1,975 | 14.5% |
| 2018 | 2,125 | 7.6% |
| 2019 | 2,230 | 4.7% |
| 2020 | 2,275 | 2.2% |
| 2021 | 2,300 | 1.1% |
| 2022 | 2,310 | 0.5% |
| 2023 | 2,320 | 0.5% |
| 2024 | 2,345 | 1.1% |
| 2025 | 2,370 | 1.1% |
Sources:
World Bank – Data.worldbank.org
Numbeo – Numbeo.com
OECD (Organisation for Economic Co-operation and Development) –Oecd.org
IMF (International Monetary Fund) – imf.org
