Somalia has reached an agreement with the International Monetary Fund (IMF) on the country’s ongoing economic program.
The East African nation reached a staff-level agreement with IMF on its program that the Extended Credit Facility (ECF) supports.
The agreement, signed on May 19, specifically relates to the second and third reviews of the ECF-supported economic program.
Somalia reached the agreement with representatives of the IMF in a virtual meeting.
Laura Jaramillo led the IMF delegation in the discussions with senior officers from the Somali government.
However, the agreement is now subject to the approval of the IMF Executive Board.
The IMF team commended Somalia for the macroeconomic stability it has displayed in the face of numerous challenges that affected its economy.
They mentioned various challenges that included the COVID-19 pandemic, increased prices of products, climate shocks, and a prolonged drought.
According to the IMF, Somalia had a real GDP growth of 2 percent in 2021.
The IMF mentions the country’s challenges since late 2020 as the primary reason for the low GDP growth.