Somalia: Economy#
Despite the lack of effective national governance, Somalia maintains an informal economy largely based on livestock, remittance/money transfer companies, and telecommunications. Somalia's government lacks the ability to collect domestic revenue and external debt – mostly in arrears – was estimated at 93% of GDP in 2014.Agriculture is the most important sector, with livestock normally accounting for about 40% of GDP and more than 50% of export earnings. Nomads and semi-pastoralists, who are dependent upon livestock for their livelihood, make up a large portion of the population. Economic activity is estimated to have increased by 3.7% in 2014 because of growth in the agriculture, construction and telecommunications sector. Somalia's small industrial sector, based on the processing of agricultural products, has largely been looted and the machinery sold as scrap metal.
In recent years, Somalia's capital city, Mogadishu, has witnessed the development of the city's first gas stations, supermarkets, and airline flights to Turkey since the collapse of central authority in 1991. Mogadishu's main market offers a variety of goods from food to electronic gadgets. Hotels continue to operate and are supported with private-security militias. Economic growth has yet to expand outside of Mogadishu, and within the city, security concerns dominate business. Telecommunication firms provide wireless services in most major cities and offer the lowest international call rates on the continent. In the absence of a formal banking sector, money transfer/remittance services have sprouted throughout the country, handling up to $1.6 billion in remittances annually, although international concerns over the money transfers into Somalia continues to threaten these services.
Economic Facts#
| GDP (purchasing power parity) | $4.431 billion (2014 est.) $4.186 billion (2013 est.) $5.607 billion (2008 est.) note: data are in 2010 US dollars |
|---|---|
| GDP (official exchange rate) | $5.8 billion (2014 est.) |
| GDP - real growth rate | 2.6% (2010 est.) 2.6% (2009 est.) 2.6% (2008 est.) |
| GDP - per capita (PPP) | $400 (2014 est.) $400 (2013 est.) $600 (2008 est.) |
| GDP - composition, by end use | household consumption: 72.1% government consumption: 8.7% investment in fixed capital: 19.8% investment in inventories: 0% exports of goods and services: 0.3% imports of goods and services: -1.7% (2015 est.) |
| GDP - composition, by sector of origin | agriculture: 60.2% industry: 7.4% services: 32.5% (2013 est.) |
| Agriculture - products | bananas, sorghum, corn, coconuts, rice, sugarcane, mangoes, sesame seeds, beans; cattle, sheep, goats; fish |
| Industries | light industries, including sugar refining, textiles, wireless communication |
| Industrial production growth rate | 3.5% (2014 est.) |
| Labor force | 3.109 million (2013 est.) |
| Labor force - by occupation | agriculture: 71% industry and services: 29% (1975) |
| Unemployment rate | NA% |
| Population below poverty line | NA% |
| Household income or consumption by percentage share | lowest 10%: NA% highest 10%: NA% |
| Budget | revenues: $145.3 million expenditures: $151.1 million (2014 est.) |
| Taxes and other revenues | 2.5% of GDP (2014 est.) |
| Budget surplus (+) or deficit (-) | -0.1% of GDP (2014 est.) |
| Fiscal year | NA |
| Inflation rate (consumer prices) | -71.1% (2014 est.) note: (2014 est.) |
| Central bank discount rate | NA% |
| Commercial bank prime lending rate | NA% |
| Current account balance | -$644 million (2014 est.) |
| Exports | $819 million (2014 est.) $779 million (2013 est.) |
| Exports - commodities | livestock, bananas, hides, fish, charcoal, scrap metal |
| Exports - partners | UAE 45.8%, Yemen 19.7%, Oman 15.9% (2015) |
| Imports | $3.482 billion (2014 est.) $3.322 billion (2013 est.) |
| Imports - commodities | manufactures, petroleum products, foodstuffs, construction materials, qat |
| Imports - partners | Djibouti 18.7%, India 16.5%, China 11.8%, Oman 8.7%, Kenya 6.1%, Pakistan 4.4% (2015) |
| Reserves of foreign exchange and gold | $30.45 million (2014 est.) |
| Debt - external | $3.054 billion (31 December 2013 est.) $2.92 billion (31 December 2014 est.) |
| Stock of direct foreign investment - at home | $NA |
| Exchange rates | Somali shillings (SOS) per US dollar - 20,227 (2014 est.) 20,227 (2013 est.) |