World Bank estimates that the Somalia economy expanded by 2.8 percent in 2018 on the back of the modest rebound of the agriculture sector. Better weather enabled a large increase in annual harvests – maize and sorghum yields grew by 39 percent – leading to stabilized food prices.
The 4th edition of the World Bank’s Somalia Economic Update (SEU) notes a steady and sustained economic recovery progress.
In addition, stable food prices led to a decline in inflation from 6.1 percent in 2017 to 3.2 percent in 2018. Moreover, there is a GDP growth forecast of 2.9 percent in 2019 and projected to expand 3.2 -3.5 in the medium term given the current momentum of reform continues.
The Somalia government is undertaking necessary fiscal and economic reform to raise domestic revenue, grow economy, finance basic public services, and expand employment opportunities. In this case, money transfer services, transport, and telecommunications recorded healthy growth.
There was the rollout of a national curriculum and providing educational opportunities in local languages. Improving education outcomes of the younger generation is key for enhancing productivity, sustaining economic recovery, boosting inclusive growth, and promoting poverty reduction is Somalia.
In addition, there is affordable mobile connectivity throughout the country thus offering opportunities for teacher quality and better learning outcomes for students
On top of that, changes in tax policies and improved tax administration leading to 29 per cent growth in revenues as the central government diversified from heavy reliance on customs duties.
There was growth in credit to the private sector by 56 per cent as financial sector reforms gave the private sector confidence to increase deposits and bank’s confidence in lending.