Ethiopia Consumer & Retail Report - Q1 2024

Abstract

We hold a positive outlook for the Ethiopian consumer spending over 2024, with real household spending forecast to reach 4.7%. Growth will be will be supported by a marked improvement in the inflationary environment and steadily improving employment prospects, while political and social stability supports private consumption and encourages fixed investment. Stubbornly high inflation and persistent devaluation of the birr remain the most significant downside risks to our forecast.