MOGADISHU (Halbeeg News) – The World Bank has lauded the progress made in realizing economic recovery in Somalia, saying it has been steady and sustained.
Somalia has achieved progress in the realization of economic restoration, World Bank has said.
In a statement about Somalia’s economic recovery, the institution said the economy of the Horn of Africa nation has been steady and sustained thanks to commitment showed by the government.
According to the statement, the Somali economy is estimated to have expanded by 2.8 percent in 2018, compared to 1.4 percent in 2017 following improvement in the agricultural sector which recovered from effects of the droughts.
“While this progress is encouraging, the available fiscal space remains insufficient to meet expenditure needs education and health sectors,” the World Bank said in a report which was released on Thursday evening.
A growth of 2.9 percent is the forecast for 2019 and it is projected to expand by 3.2-3.5 percent over the medium-term, assuming the current reform momentum continues.
The 4th edition of the World Bank report says heightened economic activity combined with reforms in tax policies and tax administration have contributed to domestic revenues increasing by 29 percent in 2018, albeit from a low base.
Hugh Riddell, World Bank country manager for Somalia said the government is laying the foundations for longer term economic development, but human capital development is essential for growth to be inclusive and sustainable.
“Attracting more public and private investment into Somalia’s education sector is therefore fundamental to securing poverty reduction in line with the hopes of the new National Development Plan,” Riddell said.
Discussion about this post