Africa Country Insight: Ethiopia
Civil war in Ethiopia has put the country on a different developmental trajectory. International and regional stakeholders cautioned that Ethiopia is facing a “narrowing window” to find a diplomatic solution to the ongoing conflict, as territorial gains by the opposition coalition and military campaigns across multiple regional states now pose risks to regional stability.
What you will learn:
- The TPLF may look to consolidate advances and possibly shift its focus to capturing transportation links between Addis Ababa and Djibouti.
- Uncertainty surrounding the post-Debt Service Suspension Initiative (DSSI) fiscal outlook poses substantial downside risk to the invisibles position.
- Set against a backdrop of a thin reserve buffer, eroding FDI appeal and collapse in grant support, the odds of a balance of payments event and credit default event have increased.
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For how long will Japan’s households support bonds and the yen?
Households' financial surpluses sharply increased in 2020 and remained high in 2021 due to the Covid pandemic. Most of the surplus continued to go to cash and deposits, but there was a notable increase in funds going to investment trusts (with a large portion invested in foreign equities) in 2021. Amid rising international yield differentials and a weakening yen, there is market chatter about whether this is the beginning of a structural shift from households' risk-averse investment style?Find Out More