The floodgates of economic challenges are opening due to the COVID-19 pandemic and economies are struggling to cross the Rubicon, and stand resilient. More corona cases mean more restriction is needed. This trend in return causes massive disruption of trades and transaction portraying a grim picture in the future.
In some cases, the economic impacts which Coronavirus has already inflicted have been worst if not more than the health crisis. Disruptions caused by containment measures and the public response are resulting in economic slowdown and fallout. This is expected to worsen as the duration extends. The virus is not only destroying lives but also shaking livelihoods. And, the overall impacts are not going to vanish any time soon.
In Ethiopia, the economic impact is going to get worse as the virus has shown no sign of slowing down with a number of daily confirmed cases rising alarmingly. The factors triggered externally and internally are leading to dramatic fall. Jobs have been lost, industries remain shut while trade and transaction hitting all-time low in some cases.
Lately, The Ethiopian Economics Association forecast that the country could lose over 139 billion Birr unless the virus is contained or restricted and measures are eased in the coming six months. Growth is also expected to slow down as well. The number of people who are being and could be affected by the socioeconomic impact induced by the virus is also projected to be high.
So far, the country has been taking various measures to counter the economic impacts of the pandemic. The economic repercussion of the pandemic is poised to intensify ahead, the country needs, as it has already vowed, to consider more options ahead. Because, the future could be more challenging than the present and the past, there should not be any option left unconsidered.
In fact, if proactive interventions are not taken to shorten the pandemic duration and safeguard the economy, the disease could multiply the socioeconomic costs, leading to vicious circle of crises. Everyone should heed to what has to be done and to ease the socio-economic burdens the country has to endure.
The Ethiopian Herald May 22/2020
