Ethiopia is going through its worst economic shock in decades due to the combined impact of Covid-19 and the conflict in Tigray. But nonetheless, the economy was still on pace to grow in 2020.
The Tigray conflict emerged when the TPLF leadership contested Prime Minister Abiy Ahmed’s authority. He responded by removing the TPLF from power in Tigray.
According to the World Bank, Ethiopia’s economy grew at an average 9.8% rate from 2008 to 2019. The effects of the Covid-19 pandemic on the economy, coupled with the conflict in the northern Tigray region, lowered growth projections.
The IMF also predicted a major slowdown for 2020, with growth dropping to 1.9%, which would be the lowest rate of growth for Ethiopia since since 2003. The World Bank’s estimates are rosier, with a growth rate of 6.3% for the 2020 fiscal year.
Ratings agency Fitch says: “We do expect more of a hit to growth in
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