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World Bank says Somalia’s economy in decline

MOGADISHU (SD) -The World Bank has announced that Somalia’s economic growth for the year 2023 is projected to decline to as low as 2.8 percent, compared to the previous year’s rate of 3.6 percent.

The bank added Somalia’s economy continues to face challenges, including the impact of global economic uncertainties, particularly related to trade tensions and external shocks.

Somalia’s economy, according to the report, is still vulnerable due to the volatility of global trade and the dependence on remittances, as well as the challenges posed by climate change and security concerns. The report anticipates a gradual recovery in the coming years, with growth expected to reach 3.7 percent in 2024 and 3.9 percent in 2025. However, this projection is subject to uncertainties related to the resolution of conflicts, the impact of the Ukraine crisis, and global economic shifts.

Somalia is currently undergoing economic recovery, despite various global challenges and local issues. The economic setback in 2022 was largely attributed to the severe drought affecting livelihoods and food security within the country.

Somalia still faces multiple challenges on its path to economic development, including ongoing conflicts, climate-related issues, and global economic uncertainties. The World Bank report emphasizes the need for continued efforts to stabilize and rebuild the economy, addressing both domestic and international factors affecting Somalia’s economic trajectory.

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