Tuesday, July 1, 2025 July 1, 2025 — HAN
Mogadishu — Somalia’s economic growth has slowed to 4.1% in 2024, down from a stronger expansion in previous years, according to new data released by the Ministry of Finance and international partners. While still showing positive momentum, the moderation reflects the combined impact of global headwinds, climate pressures, and ongoing security concerns.
The country’s economy had rebounded impressively in the years following the COVID-19 pandemic, driven by remittances, agriculture, and reconstruction activity. However, officials say the current slowdown underscores the need for continued reforms and greater investment in infrastructure and job creation.
“Somalia’s economy remains resilient, but growth has decelerated due to both internal and external shocks,” said Finance Minister Bihi Iman Egeh. “We are working to maintain stability, support small businesses, and attract new investment.”
Key sectors such as livestock exports and telecommunications continue to perform well, but agriculture — the backbone of the economy — has been affected by erratic rainfall and drought in parts of the country. Inflation has also placed pressure on household incomes, particularly in urban areas.
Despite the slowdown, Somalia’s economic outlook remains cautiously optimistic. The government’s continued efforts toward debt relief under the Heavily Indebted Poor Countries (HIPC) Initiative, along with support from international donors, are expected to lay the foundation for more sustainable and inclusive growth.
Economists note that while a 4.1% growth rate marks a cooling from earlier forecasts, it still represents progress in a fragile context.
“Somalia is on a long-term development path, and even modest growth is meaningful when accompanied by structural reforms and peacebuilding efforts,” said a World Bank representative in Mogadishu.
The government says it will continue to prioritize fiscal stability, expand revenue collection, and invest in education, health, and digital infrastructure to drive future growth.
