Economy Of Somalia

Economy overview Somalia's economic fortunes are being driven by its deep political divisions. The northern area has declared its independence as "Somaliland"; the central area, Puntland, is a self-declared autonomous state; and the remaining southern portion is riddled with the struggles of rival factions. Economic life continues, in part because much activity is local and relatively easily protected. Agriculture is the most important sector, with livestock normally accounting for about 40% of GDP and about 65% of export earnings, but Saudi Arabia's recent ban on Somali livestock, because of Rift Valley Fever concerns, has severely hampered the sector. Nomads and semi-nomads, who are dependent upon livestock for their livelihood, make up a large portion of the population. Livestock, hides, fish, charcoal, and bananas are Somalia's principal exports, while sugar, sorghum, corn, qat, and machined goods are the principal imports. Somalia's small industrial sector, based on the processing of agricultural products, has largely been looted and sold as scrap metal. Despite the seeming anarchy, Somalia's service sector has managed to survive and grow. 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 exchange services have sprouted throughout the country, handling between $200 million and $500 million in remittances annually. Mogadishu's main market offers a variety of goods from food to the newest electronic gadgets. Hotels continue to operate, and militias provide security. The ongoing civil disturbances and clan rivalries, however, have interfered with any broad-based economic development and international aid arrangements. In 2002 Somalia's overdue financial obligations to the IMF continued to grow. Statistics on Somalia's GDP, growth, per capita income, and inflation should be viewed skeptically.
 
GDP purchasing power parity - $4.361 billion (2004 est.)
 
GDP - real growth rate 2.1% (2004 est.)
 
GDP - per capita purchasing power parity - $500 (2004 est.)
 
GDP - composition by sector
agriculture: 65%
industry: 10%
services: 25% (2000 est.)
 
Investment gross fixed  
Population below poverty line NA
 
Household income or consumption by percentage share
lowest 10%: NA
highest 10%: NA
 
Distribution of family income - Gini index  
Inflation rate consumer prices note - businesses print their own money, so inflation rates cannot be sensibly determined (2003 est.)
 
Labor force 3.7 million (very few are skilled laborers)
 
Labor force by occupation agriculture (mostly pastoral nomadism) 71%, industry and services 29%
 
Unemployment rate NA
 
Budget
revenues: NA
expenditures: NA, including capital expenditures of NA
 
Public debt  
Agriculture products cattle, sheep, goats; bananas, sorghum, corn, coconuts, rice, sugarcane, mangoes, sesame seeds, beans; fish
 
Industries a few light industries, including sugar refining, textiles, petroleum refining (mostly shut down), wireless communication
 
Industrial production growth rate NA
 
Electricity production 245.1 million kWh (2001)
 
Electricity production by source
fossil fuel: 100%
hydro: 0%
other: 0% (2001)
nuclear: 0%
 
Electricity consumption 227.9 million kWh (2001)
 
Electricity exports 0 kWh (2001)
 
Electricity imports 0 kWh (2001)
 
Oil production 0 bbl/day (2001 est.)
 
Oil consumption 4,000 bbl/day (2001 est.)
 
Oil exports NA (2001)
 
Oil imports NA (2001)
 
Oil proved reserves 0 bbl (1 January 2002)
 
Natural gas production  
Natural gas consumption  
Natural gas exports  
Natural gas imports  
Natural gas proved reserves 2.832 billion cu m (1 January 2002)
 
Current account balance  
Exports $79 million f.o.b. (2002 est.)
 
Exports commodities livestock, bananas, hides, fish, charcoal, scrap metal
 
Exports partners UAE 37.2%, Yemen 22.3%, Oman 10.1%, China 6%, Kuwait 4.4%, Nigeria 4% (2003)
 
Imports $344 million f.o.b. (2002 est.)
 
Imports commodities manufactures, petroleum products, foodstuffs, construction materials, qat
 
Imports partners Djibouti 33.9%, Kenya 15.5%, Brazil 6.6%, UAE 5.1%, Thailand 4.2% (2003)
 
Reserves of foreign exchange gold  
Debt external $2.6 billion (2000 est.)
 
Economic aid recipient $60 million (1999 est.)
 
Currency Somali shilling (SOS)
 
Currency code SOS
 
Exchange rates Somali shillings per US dollar - 11,000 (November 2000), 2,620 (January 1999), 7,500 (November 1997 est.), 7,000 (January 1996 est.), 5,000 (1 January 1995)
note: the Republic of Somaliland, a self-declared independent country not recognized by any foreign government, issues its own currency, the Somaliland shilling
 
Fiscal year NA

 

 

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This information was reproduced in part from the CIA World Fact book.

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