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IMF expects Somalia’s GDP to grow by in 2018

By Reuters , Somalia
IMF projected gross domestic product at 3.1 percent this year from 2.3 percent in 2017 [File photo]

MOGADISHU, Somalia - Somalia’s economic growth is expected to pick up in 2018 as it recovers from the drought that had reduced farming output, the International Monetary Fund said on Tuesday.

It said it projected gross domestic product at 3.1% this year from 2.3% in 2017. Somalia exports bananas and also produces sorghum.

“Economic activity in 2018 is recovering from the 2016–17 drought. A favourable rainy season is supporting the economic recovery, particularly in the agricultural and livestock sectors; this is leading to a decline in food prices,” the fund said in a statement.

The IMF expects inflation to reach 3.5% this year, down from 5.5% in 2016.

Somalia has been in turmoil since 1991 when clan-based warlords overthrew the ex-military regime and then turned on each other. Over the past decads, it has also been hit by an insurgency waged by al Shabaab, as well as famine and maritime piracy.

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