The short‐term economywide impacts of COVID‐19 in Africa: Insights from Ethiopia

The COVID‐19 impact on the global economy combined with partial lockdown measures in Ethiopia represents a large, unprecedented shock to the country's economy. The social accounting matrix (SAM) multiplier model, built on the most up‐to‐date SAM (2017) for Ethiopia, shows that the country suffered a...

Full description

Bibliographic Details
Main Authors: Aragie, Emerta A., Taffesse, Alemayehu Seyoum, Thurlow, James
Format: Journal Article
Language:Inglés
Published: African Development Bank 2021
Subjects:
Online Access:https://hdl.handle.net/10568/142265
_version_ 1855519894728081408
author Aragie, Emerta A.
Taffesse, Alemayehu Seyoum
Thurlow, James
author_browse Aragie, Emerta A.
Taffesse, Alemayehu Seyoum
Thurlow, James
author_facet Aragie, Emerta A.
Taffesse, Alemayehu Seyoum
Thurlow, James
author_sort Aragie, Emerta A.
collection Repository of Agricultural Research Outputs (CGSpace)
description The COVID‐19 impact on the global economy combined with partial lockdown measures in Ethiopia represents a large, unprecedented shock to the country's economy. The social accounting matrix (SAM) multiplier model, built on the most up‐to‐date SAM (2017) for Ethiopia, shows that the country suffered a 14.3% loss in GDP (Birr 43.5 billion or US$1.9 billion) during the lockdown period compared to the no‐COVID case during the same period. Nearly two‐thirds of the losses come from the services sector. Although no direct restrictions were imposed on the agriculture sector, which is the primary means of livelihood for most, the sector faces a 4.7% loss in output due to its linkages with the rest of the economy. We find dissimilar income and poverty effects across households by income quintile and level of urbanization. The study also considers two recovery scenarios and generates relevant insights on the potential impacts of COVID‐19 by the end of 2020. The earmarked relief and recovery plan resources can only help the economy to recover if targeted in an efficient way towards sectors most affected by COVID‐19, and further resources are mobilized to support strategic sectors—those with the highest economywide multiplier effects—and vulnerable communities.
format Journal Article
id CGSpace142265
institution CGIAR Consortium
language Inglés
publishDate 2021
publishDateRange 2021
publishDateSort 2021
publisher African Development Bank
publisherStr African Development Bank
record_format dspace
spelling CGSpace1422652025-03-18T19:48:25Z The short‐term economywide impacts of COVID‐19 in Africa: Insights from Ethiopia Aragie, Emerta A. Taffesse, Alemayehu Seyoum Thurlow, James models economic impact covid-19 gross national product quarantine poverty The COVID‐19 impact on the global economy combined with partial lockdown measures in Ethiopia represents a large, unprecedented shock to the country's economy. The social accounting matrix (SAM) multiplier model, built on the most up‐to‐date SAM (2017) for Ethiopia, shows that the country suffered a 14.3% loss in GDP (Birr 43.5 billion or US$1.9 billion) during the lockdown period compared to the no‐COVID case during the same period. Nearly two‐thirds of the losses come from the services sector. Although no direct restrictions were imposed on the agriculture sector, which is the primary means of livelihood for most, the sector faces a 4.7% loss in output due to its linkages with the rest of the economy. We find dissimilar income and poverty effects across households by income quintile and level of urbanization. The study also considers two recovery scenarios and generates relevant insights on the potential impacts of COVID‐19 by the end of 2020. The earmarked relief and recovery plan resources can only help the economy to recover if targeted in an efficient way towards sectors most affected by COVID‐19, and further resources are mobilized to support strategic sectors—those with the highest economywide multiplier effects—and vulnerable communities. 2021-06-17 2024-05-22T12:10:14Z 2024-05-22T12:10:14Z Journal Article https://hdl.handle.net/10568/142265 en Limited Access African Development Bank Aragie, Emerta; Taffesse, Alemayehu Seyoum; and Thurlow, James. 2021. The short‐term economywide impacts of COVID‐19 in Africa: Insights from Ethiopia. African Development Review 31(S1): S152-S164. https://doi.org/10.1111/1467-8268.12519
spellingShingle models
economic impact
covid-19
gross national product
quarantine
poverty
Aragie, Emerta A.
Taffesse, Alemayehu Seyoum
Thurlow, James
The short‐term economywide impacts of COVID‐19 in Africa: Insights from Ethiopia
title The short‐term economywide impacts of COVID‐19 in Africa: Insights from Ethiopia
title_full The short‐term economywide impacts of COVID‐19 in Africa: Insights from Ethiopia
title_fullStr The short‐term economywide impacts of COVID‐19 in Africa: Insights from Ethiopia
title_full_unstemmed The short‐term economywide impacts of COVID‐19 in Africa: Insights from Ethiopia
title_short The short‐term economywide impacts of COVID‐19 in Africa: Insights from Ethiopia
title_sort short term economywide impacts of covid 19 in africa insights from ethiopia
topic models
economic impact
covid-19
gross national product
quarantine
poverty
url https://hdl.handle.net/10568/142265
work_keys_str_mv AT aragieemertaa theshorttermeconomywideimpactsofcovid19inafricainsightsfromethiopia
AT taffessealemayehuseyoum theshorttermeconomywideimpactsofcovid19inafricainsightsfromethiopia
AT thurlowjames theshorttermeconomywideimpactsofcovid19inafricainsightsfromethiopia
AT aragieemertaa shorttermeconomywideimpactsofcovid19inafricainsightsfromethiopia
AT taffessealemayehuseyoum shorttermeconomywideimpactsofcovid19inafricainsightsfromethiopia
AT thurlowjames shorttermeconomywideimpactsofcovid19inafricainsightsfromethiopia