Ethiopia's economy is projected to grow by 10.1% during the 2026/2027 fiscal year, which began on July 8, President Taye Atske Selassie said Tuesday.

Atske Selassie made the remarks while outlining the country's key economic, social and political targets at the joint opening session of the House of Peoples' Representatives and the House of Federation, the lower and upper chambers of parliament, respectively, in Addis Ababa.

He identified sustaining broad-based economic development, delivering quality public services, ensuring peace and security, improving institutional coordination and strengthening foreign relations as key priorities for the current budget year.

Building on economic growth of 10.2% recorded in the 2025/2026 fiscal year, the president said comprehensive efforts are underway to maintain the positive momentum and achieve the 10.1% growth target despite global and domestic challenges.

He said strategic fiscal measures are being implemented to support a thriving and diversified economic base, including efforts to improve domestic revenue collection.

Atske Selassie also highlighted the country's economic performance during the 2025/2026 fiscal year, which ended on July 7. Annual export revenues reached a record $11.2 billion, while foreign direct investment inflows rose to $4.5 billion.

The current fiscal year also marks the first year of Ethiopia's new federal government, formally established on Monday after the ruling Prosperity Party appointed incumbent Prime Minister Abiy Ahmed to another five-year term.

The formation of the new government followed the completion of the constitutional process arising from the seventh general election held on June 1, in which the Prosperity Party secured a landslide victory.