The economy of Ethiopia will shrink between 5.6 to 11 percent as a result of coronavirus (COVID-19) pandemic, stated a paper by the renowned Addis Ababa University Economics Professor Alemayehu Geda. With this information, the effected of the 11 percent economic shock is to reduce this GDP by 227 billion Birr. In the best case scenario, the effect of the COVID-19 being limited to the firs quarter only, import may decline only by 6 percent. In the worst-case scenario where the COVID-19 is assumed to last for three consecutive quarters, imports may decline by about 18 percent. – Full monetization of the COVID-19 related financing is highly inflationary that hurts the poor and leads to macroeconomic instability.

Source: Ethiopian News April 27, 2020 14:37 UTC