The Covid-19 crisis has added to the economic struggles in Ethiopia, causing reduced household incomes, business closures, and decreased demand for goods and services. Although studies have documented the macroeconomic impact of this global health crisis, understanding the pandemic's impact through quantitative projections can provide vital insights into its effects on welfare and distributional outcomes. Using microsimulation techniques, a group of PEP researchers assessed the impact of the Covid-19 pandemic on Ethiopian households. They found that the Covid-19 pandemic's detrimental effect on household income and food prices lead to an increase in poverty rates. In addition, the pandemic particularly affected women and people living in rural areas. Find out more about the research methods, findings and policy recommendations in the following PEP publications:
