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Somalia’s economy is forecast to grow 2.9 percent this year

NAIROBI – Somalia’s economy is forecast to grow 2.9 percent this year from 2.8 percent last year, but security risks and vulnerability to climate shocks could cloud the outlook, the International Monetary Fund said.

The Horn of Africa country has experienced conflict since 1991, when clan warlords overthrew President 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 militant group al Shabaab.

“Economic growth is projected to remain broadly stable at 2.9 percent in 2019. Inflation is projected to increase temporarily to 4 percent in 2019, due to higher food prices as a result of poor rainfall earlier in the year,” the IMF said.

“Key risks to the outlook continue to reflect the difficult security situation and vulnerability to climate shocks,” it added in a statement late on Wednesday.

In May, the fund had put Somalia’s economic growth forecast at 3 percent, and inflation projections at 3 percent to 3.2 percent.