Somalia’s economy is expected to grow by 2.9% this year, from 2.8% last year, before growth quickens to 3.2-3.5% in the medium term, as per official World Bank statement. Over the past decades, Somalia was severly effected by recurring famine, droughts, floods and sporadic terror attacks by al Shabaab. The higher growth forecast for the next three-to-five years would depend, inter alia, on the country ability to sustain its current economic reform momentum, the World Bank said in a statement.
Tax collection by the government increased by 29% last year, as the economy recovered from a drought the previous year and the government changes its tax policies, the World Bank said. In May, the International Monetary Fund said Somalia’s economy was on the right track but warned that it was still vulnerable to fragile security, climate change and poverty.
Somalia’s economic growth on the rise
