International Monetary Fund

Somalia: IMF estimates economic growth at 3% in 2019

The International Monetary Fund (IMF) says Somalia’s economy has continued to recover, with growth expected to strengthen to three per cent in 2019 from 2.8 per cent last year.

IMF said on Tuesday the country’s inflation could ease to 3 per cent from 3.2 per cent over the same period. Somalia has been in turmoil since 1991, when clan-based warlords overthrew Siad Barre and then turned on each other.

Over the past decade it has been hit by famine and sporadic terror attacks by al Qaeda-linked al Shabaab.

“Somalia’s economy continues to recover, supported by vigorous activity in the construction, telecommunications, and financial services sector in 2018,” Allison Holland, who lead an IMF team discussing Somalia’s Article IV programme, said in a statement.

Read Also: Union Bank Plc. strengthens key indicators to boost earnings

“But the outlook remains vulnerable to the still fragile security situation, climate shocks and the still developing institutional capacity, and more is needed to improve economic resilience, increase employment and reduce poverty.”

An Article IV consultation is part of the IMF’s mandate to scrutinise the economic, financial and exchange rate policies of its members.

Holland said Somali government had broadened its tax base and strengthened tax administration, which had boosted domestic revenue to $54 million for the first quarter of 2019 from $184 million in the whole of 2018. 

Somalia: IMF estimates economic growth at 3% in 2019