World Bank Warns of Rising Poverty

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The World Bank projected Ethiopia’s poverty rate to rise to 43% in 2025, reversing years of progress. The report cites conflict, drought, inflation, and economic shocks as key drivers. Poverty climbed from 33% in 2016 to 39% in 2021, with rural communities most affected. Despite reforms to stabilize the economy and expand safety nets, the Bank warned that Ethiopia faces debt distress and rising inequality.