Somalia Economic Update, August 2018 : Rapid Growth in Mobile Money -- Stability or Vulnerability?
Somalia’s economy grew by 2.3 percent in 2017. The economy remains vulnerable to recurrent shocks. Between 2013 and 2017, real annual GDP growth averaged 2.5 percent. Growth occurred despite adverse weather conditions that severely reduced agricult...
| Main Author: | |
|---|---|
| Format: | Report |
| Language: | English |
| Published: |
World Bank, Washington, DC
2018
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/975231536256355812/Rapid-Growth-in-Mobile-Money-Stability-or-Vulnerability http://hdl.handle.net/10986/30417 |
| Summary: | Somalia’s economy grew by 2.3 percent in
2017. The economy remains vulnerable to recurrent shocks.
Between 2013 and 2017, real annual GDP growth averaged 2.5
percent. Growth occurred despite adverse weather conditions
that severely reduced agricultural output in late 2016 and
early 2017. For Somalia to enhance and sustain economic
growth and escape chronic poverty, it must increase its
resilience to shocks. Growth recovery is set to continue
beyond 2018, lifted by gains from ongoing reforms as well as
improved security. Rising domestic demand, remittances, and
donor inflows and consolidation of peace and security are
expected to drive growth in 2019–20. Achieving higher growth
will require acceleration of structural reforms,
particularly in three areas: fiscal policy and public
financial management, provision of basic services (to
promote human development and inclusion), and improved
resilience to weather shocks particularly in the agriculture
sector. Mobile money is an essential part of Somalia’s
economic ecosystem. Almost three-quarters of the population
aged 16 and above use mobile money on a regular basis. It is
now the main transaction instrument used by both individuals
and businesses across the country: presenting an opportunity
to increase access to finance, spur inclusive growth, and
promote resilient communities. However, with increasing
dependence on mobile money as a medium of exchange comes
increased vulnerabilities. |
|---|