Somalia’s economy grew by almost 3% this year – World Bank

The World Bank announced in a statement yesterday that Somalia’s economy grew 2.9% this year and 2.8% last year.

A report released today by the World Bank states that Somalia’s economic growth rate over the next three to five years will depend on the sustainability of the country’s economy.

Tax collection by the government increased by 29% last year, as the economy recovered from a drought the previous year and the government changes its tax policies, the World Bank said.

“While this progress is encouraging, the available fiscal space remains insufficient to meet expenditure needs (for) education and health sectors,” the bank said.

It asked the government to form a fund dedicated to education to allow authorities in Mogadishu to mobilize more cash from regional states and other partners to support learning.

In May, the International Monetary Fund said Somalia’s economy was on the right track but warned that it was still vulnerable to fragile security, climate change, and poverty.

SOURCE: Reuters