Ethiopia’s economy faced six distinct shocks this past quarter, including major
price spikes in global markets as well as domestic shocks linked to conflict and drought.

o Global shocks: Four items—namely fuel, food, fertilizers, and freight—will be costing Ethiopia an extra $4bn this year and raising total imports from $14bn to $18bn.

o Domestic shocks: The devastating recent conflict and worst drought in decades will, in turn, be bringing record high budgetary spending for security, relief, and recovery….