IMF Commends Somalia’s Economy Recovery Process

Published: July 30, 2015

IMF Commends Somalia’s Economic Recovery ProcessThe International Monetary Fund has commended the Somalia’s steady progress towards economic recovery, noting that efforts to strengthen policies have buoyed the economy after decades of civil war. 
IMF released a Press statement on Wednesday following its first review on the country’s economy in more than two decades. It called for the government to further put focus on stability and growth in order to succeed in economic recovery.
‘’Economic activity is estimated to have expanded by 3.7 percent in 2014, driven by growth in agriculture, construction, and telecommunications. Consumer price inflation was 1.3 percent. For 2015, real growth is projected at 2.7 and inflation should remain subdued at about 4 percent. With modest progress on the security front and an absence of drought, medium-term annual growth should be about 5 percent,’’ read part of the statement.
In 2013, the International Monetary Fund recognised the government of Somalia after a break in relations of 22 years. The move enabled IMF to provide technical support and policy advice to the Federal government.
Somalia still owes some $352 million to the Fund and till currently ineligible for any new financing.
Ministry of Finance of the Federal government said that the income generated from the local economy increased.
‘’Each month we generate an amount of $10 million which shows how the economy is improving compared to last year where monthly we used to only generate $5 million,’’ said Abdullahi Mohammed Nur, State Minister of Finance.
In a report released months ago by the Food and Agricultural organization (FAO), Somalia recorded one of its highest exports of livestock in a single year since the collapse of the central government in 1991 by transporting 5 million livestock to markets in the Gulf of Arabia.
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