Researcher Forecasts 139 Billion Birr Loss If Virus Related Restrictions Continue for 6 Months

Addis Ababa, May 14/2020(ENA)  A quick win intervention together with recovery plan is imperative to minimize COVID-19 induced economic and social crises that could cost Ethiopia over 139 billion birr if the virus related restrictions stay for six months, a researcher said.

If COVID-19 related restrictions stay for six months, Ethiopia could loss around 139.2 billion Birr and  GDP of 204 billion Birr.

Speaking at the 5th virtual discussion of scholars, Science and Higher Education Minister Professor Hirut Woldemariam said the ministry has been carrying out rigorous research on the impact of COVID-19 with recommendations.

The pandemic has already inflicted huge damage on the hospitality, tourism and transportation sectors and the situation will obviously accelerate unemployment and decrease in percapita income of the country, she added.

Appreciating the commendable measures the government has been taking, the minster said, noting that more government intervention is needed in major areas.

“As you know our government has taken good measures by imposing  partial lockdown since the outbreak. We  have specially witnessed how the government is determined to respond to the economic crisis through ejecting financial liquidity for banks and canceling excessive tax,” she elaborated.

However, the economic impact of COVID-19 could not be underestimated unless the government enhances more intervention.

According to her, Ethiopia is forced to revise its 10 years economic development strategic plan due to COVID-19.

A researcher who presented a paper on the economic effect  of  COVID-19, Dr. Tadele Ferede said the economy will experience loss of around 139.2 billion Birr if the virus continues its existence under a mild scenario for six months.

Tadele recommended scaling up of safety net programs, increase in domestic production and maintaining uninterrupted supply chain.

Plan and Development Deputy Commissioner, Endalkachew Sime said out of the 7.5 million people working in urban areas over 700, 000 would be impacted by COVID-19 in three months.

He added that Ethiopia had projected a 9 percent growth in the 2019/20 fiscal year.

However, the projection will fall by 2.8 percent due to COVID-19 in three months stay and that will result in 70 billion Birr loss, the deputy commissioner pointed out.