The Ethiopian Economic

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The Ethiopian Economic Policy Research Institute which is under the Ethiopian Economics Association released a Policy Working Paper entitled ‘Economic and Welfare Effects of COVID-19 and Responses in Ethiopia: Initial Insights’ to review the economic impact of the pandemic.
‘The Novel Coronavirus, or COVID-19, pandemic is a global challenge that requires coordinated efforts from governments, individuals, businesses, and various stakeholders. The world economy is experiencing a historic and unprecedented shocks as the pandemic triggers a number of shocks simultaneously including health, supply, demand and financial shocks. Efforts by governments to control the COVID-19 pandemic through partial and full business closures unavoidably leads to general decline in economic activities domestically and globally. This contraction in economic activities leads to economic recession if the pandemic lasts for a prolonged period. Studies indicated that societies with a lower economic status are more vulnerable to rising rates of chronic illness from the COVID-19 further complicated by economic and social welfare hardships. This, in turn, further depresses productivity and raises health care costs, leading to increased poverty, and hence again more disease. This is a “disease-driven poverty trap” the report reads. The writers of this paper also said that this paper is released urgently to make it available for reference; hence it has not undergone a peer-review process.