Categories: General

Somalia’s Economy to Grows by 2.4 Percent Despite a Challenging Year

Somalia’s gross domestic product (GDP) is to grow by an impressive 2.4 percent this financial year despite the multiple challenges that the country faced.

The World Bank announced this on September 14 in its latest report on Somalia.

According to the World Bank, the growth is quite impressive considering the triple shock of the COVID-19 pandemic, incessant flooding, and the locust infestation.

This is more remarkable since the World Bank report shows that Somalia’s economy had contracted by 0.4 percent in 2020.

Initially, analysts had projected a contraction of close to 1.5 percent.

The World Bank Somalia Economic Update cites higher aid flows and the government’s fiscal policy for aiding businesses as some of the factors responsible for the upturn in fortune.

Other factors included the social protection measures the Federal Government of Somalia (FGS) put in place and higher remittances than was originally expected.

FTL Somalia

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