Somalia Economic Update, August 2019 : Building Education to Boost Human Capital
The economy is recovering slowly from drought, but Somalia continues to face significant challenges.The Somali economy rebounded in 2018 from the 2016/17 drought.Public finances continued to strengthen in 2018.Credit to the private sector grew rapi...
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| Format: | Report |
| Language: | English |
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World Bank, Washington, DC
2019
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| Online Access: | http://documents.worldbank.org/curated/en/811231567610111001/Somalia-Economic-Update-Fourth-Edition-Building-Education-to-Boost-Human-Capital http://hdl.handle.net/10986/32347 |
| Summary: | The economy is recovering slowly from
drought, but Somalia continues to face significant
challenges.The Somali economy rebounded in 2018 from the
2016/17 drought.Public finances continued to strengthen in
2018.Credit to the private sector grew rapidly in 2018, and
Somalia’s financial sector supervisory capacity continued to
strengthen.The current account deficit declined slightly.The
medium-term outlook is for a moderate increase in GDP
growth.This outlook is subject to significant risks and
depends on continued policy reforms. Key risks to
medium-term growth prospects include security concerns,
weather and climatic shocks, and political uncertainty. The
authorities have been developing a track record of reform in
areas of revenue mobilization, expenditure control, and
financial sector regulation. Important challenges remain,
however.A slowdown in the reform momentum would not only
undermine medium-term economic growth, but also could delay
the normalization of Somalia’s relations with international
financial institutions and access to critical external
resources needed for development.Finally, Somalia needs to
accelerate economic growth and reorient government spending
towards public investment, particularly investment to boost
human capital. |
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