How the Tigray conflict is impacting country’s economy

Ethiopia's economy is facing a grim future as the Tigray conflict continues to wreak havoc on the country's economic stability. The conflict has not only resulted in a huge human cost but has also had a significant impact on various aspects of the economy. Senior financial economist at NKC African Economics, Irmgard Erasmus, shed light on the dire situation in Ethiopia during a recent interview on CNBC Africa. The narrative surrounding the conflict in Tigray is closely controlled by the Ethiopian government, making it challenging to verify the true extent of the crisis on the ground. However, reports from international humanitarian organizations paint a starkly different picture, indicating a dire situation in the region. The UN has reported that only a fraction of the targeted food support is reaching the population in need, leading to issues of famine and skyrocketing local prices. With an initial focus on 0% GDP growth in 2021, the economic outlook for Ethiopia remains bleak. The government's strict control over the narrative, coupled with restrictions on telecommunications and access to the region, has hampered efforts to address the crisis effectively.