Economic Analysis: #COVIDー19’s test to the Ethiopian economy

[Deeq A.]

The world is shocked with the spread of a new strain of Coronavirus, now called COVID-19, which is categorized by the World Health Organization (WHO) as a global pandemic. The virus is spreading so fast that countries are closing borders, restricting mobility, instituting strict surveillance measures, establishing and operationalizing quarantines, putting money into social awareness programs, importing sanitation products and supporting the needy (particularly the elderly).

Globally, markets are seeing downward spiral. Major indices such as DOW Jones, NSADAQ 100, S&P 100, and NIKKEI have all been witnessing declines in the past few weeks. Jobs are getting lost, while savings are eroding in the face of increasing health care expenditures. Vulnerable groups, such as people without health insurance coverage, have increasingly become vulnerable.

Ethiopia has identified the first victim of the virus on March 13, 2020. By the time this article was composed, the total number of confirmed cases has reached 6, while the total number of people under close follow-up stands at 992. Prime Minister Abiy Ahmed has ordered 15 days of ban on gatherings, sporting events and school. As it stands, it looks like the number of cases will increase and so will the magnitude of the problem. But there is a higher chance to put the problem under control if stakeholders, from religious institutions to business people, are to coordinate their acts towards preventing the spread of the virus.

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