Ethiopia Economic Update, No. 8: Ensuring Resilient Recovery from COVID-19

Publication:
Ethiopia Economic Update, No. 8: Ensuring Resilient Recovery from COVID-19

dc.contributor.author	Sanchez Martin, Miguel
dc.contributor.author	Mulugeta, Samuel
dc.contributor.author	Getachew, Zerihun
dc.contributor.author	Wieser, Christina
dc.date.accessioned	2021-05-10T13:57:31Z
dc.date.available	2021-05-10T13:57:31Z
dc.date.issued	2021-03
dc.description.abstract	COVID-19 has severely affected Ethiopia, weakening its economic performance. Ethiopia has experienced a collapse in external demand since April 2020 due to COVID-19. While merchandise exports, excluding gold, increased by 5.8 percent overall in FY20, they declined by 4.1 percent during July-December 2020 (year-on-year). Exports of garments, textiles, and fruits and vegetables have been particularly hit since the onset of the pandemic. Both exports and imports of services, dominated by air transport, recorded negative growth in FY20. Remittances dropped by 10 percent in FY20, although they have rebounded during the first half of FY21. Merchandise imports, which were already on decline prior to COVID-19, dropped by 8 percent in FY20, contributing to the narrowing of the current account balance, estimated at about 4 percent of GDP. Meanwhile, foreign direct investment has been severely hit, with inflows declining by 20 percent in FY20, contributing to weakening reserve levels. Despite the severe impacts, Ethiopia grew at 6.1 percent in FY20, as the impact of the COVID-19 pandemic took place largely in the final quarter of the fiscal year. Phone survey data suggests that both firm revenue and household income are significantly depressed, which points to weakening domestic demand. The adverse impact of the COVID-19 pandemic on economic activity is expected to continue in FY21, prior to experiencing a rebound in FY22 and beyond. Further action is needed to ensure a resilient economic recovery. The Government of Ethiopia is to be commended for having kept advancing its Homegrown Economic Reform Agenda despite COVID-19. Implementing some complementary reforms will be key to ensuring a resilient recovery in the new COVID-19 normal.	en
dc.identifier	http://documents.worldbank.org/curated/en/672121619537898959/Eighth-Ethiopia-Economic-Update-Ensuring-Resilient-Recovery-from-COVID-19
dc.identifier.doi	10.1596/35550
dc.identifier.uri	https://hdl.handle.net/10986/35550
dc.language	English
dc.publisher	World Bank, Washington, DC
dc.rights	CC BY 3.0 IGO
dc.rights.holder	World Bank
dc.rights.uri	http://creativecommons.org/licenses/by/3.0/igo
dc.subject	CORONAVIRUS
dc.subject	COVID-19
dc.subject	PANDEMIC IMPACT
dc.subject	PANDEMIC RESPONSE
dc.subject	ECONOMIC GROWTH
dc.subject	EXTERNAL SECTOR
dc.subject	MONETARY POLICY
dc.subject	FISCAL TRENDS
dc.subject	PUBLIC DEBT
dc.subject	ECONOMIC OUTLOOK
dc.subject	RISKS
dc.subject	EMPLOYMENT
dc.subject	LIVELIHOODS
dc.subject	EDUCATIONAL ATTAINMENT
dc.subject	POVERTY REDUCTION
dc.subject	RESILIENT RECOVERY
dc.subject	FOOD SECURITY
dc.subject	SOCIAL ASSISTANCE
dc.subject	ACCESS TO FINANCE
dc.title	Ethiopia Economic Update, No. 8	en
dc.title.subtitle	Ensuring Resilient Recovery from COVID-19	en
dc.type	Report	en
dc.type	Rapport	fr
dc.type	Informe	es
dspace.entity.type	Publication
okr.crossref.title	Ethiopia Economic Update, No. 8
okr.date.disclosure	2021-04-27
okr.date.doiregistration	2025-05-07T09:19:49.311963Z
okr.doctype	Economic & Sector Work
okr.doctype	Economic & Sector Work::Economic Updates and Modeling
okr.docurl	http://documents.worldbank.org/curated/en/672121619537898959/Eighth-Ethiopia-Economic-Update-Ensuring-Resilient-Recovery-from-COVID-19
okr.guid	672121619537898959
okr.identifier.externaldocumentum	090224b088533a86_1_0
okr.identifier.internaldocumentum	33030231
okr.identifier.report	158591
okr.imported	true	en
okr.language.supported	en
okr.pdfurl	http://documents.worldbank.org/curated/en/672121619537898959/pdf/Eighth-Ethiopia-Economic-Update-Ensuring-Resilient-Recovery-from-COVID-19.pdf	en
okr.region.administrative	Africa
okr.region.administrative	Africa Eastern and Southern (AFE)
okr.region.country	Ethiopia
okr.topic	Macroeconomics and Economic Growth::Business Cycles and Stabilization Policies
okr.topic	Macroeconomics and Economic Growth::Economic Growth
okr.topic	Macroeconomics and Economic Growth::Fiscal & Monetary Policy
okr.topic	Poverty Reduction::Employment and Shared Growth
okr.topic	Social Protections and Labor::Employment and Unemployment
okr.topic	Social Protections and Labor::Social Protections & Assistance
okr.unit	Macroeconomics, Trade and Investment Global Practice