Will renewed conflict derail Ethiopia's economic growth?
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Ethiopia's strong economic growth, with the IMF forecasting 9.2% real growth for the 2025–26 fiscal year, is threatened by renewed fighting in the north, high reconstruction costs, and climate-related crop problems. Analyst Abdulmenan Mohammed warns that major conflict will make growth unsustainable. Previous conflicts between 2020 and 2022 caused over $22.6 billion in damage and around $6 billion in economic losses, with reconstruction needs estimated at $19.7 billion.
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