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Somalia’s Economy Shows Improvement – World Bank Report


GOOBJOOG NEWS | MOGADISHU: Somalia’s economy has shown great improvement despite various challenges facing the country, a World Bank report has shown.

The World Bank’s annual Somalia Economic Report launched Friday highlighted the country’s progress in financial reform and debt relief and noted the challenges posed by climate change.

Somali Finance Minister Bihi Iman Ige said the growth can be attributed to the Federal Government’s efforts in financial reform and debt forgiveness.

According to the report, Somalia registered a 3.7% increase in domestic income this year, with projections for a further rise of 3.9% in 2025. This follows a 3.1% increase in revenue reported in 2023, marking a steady upward trajectory since 2.4% growth in 2022.

The report also commended the Somali government’s progress in implementing financial reforms and strengthening the General System of Financial Administration. These reforms are seen as a key factor in boosting domestic revenue collection.

The report at the same time noted the challenges posed by climate change on the country saying Somalia has been heavily impacted by climate-related issues, and outlined strategies to mitigate these effects.

Kristina Svensson, representing the World Bank, applauded the Somali government’s achievements in domestic revenue generation and financial system reforms.

The World Bank’s annual report serves as a valuable tool for assessing Somalia’s economic development and identifying areas for further improvement. It provides a comprehensive overview of the country’s financial health, highlighting both progress made and challenges faced.