79% of Somalia's GDP in 2020 was foreign aid and remittances

Thegoodshepherd

Galkacyo iyo Calula dhexdood
Staff Member
Foreign aid and remittances from the diaspora accounted for an unbelievable 79% of GDP in 2020. Somalia's internal economy is incredibly unproductive, with the trade deficit at a whopping 91% of GDP in 2020, due to the inability to export livestock as a result of the cancellation of the Hajj and Gulf Covid19 restrictions.

GDP per capita is declining every year because population growth is probably above 3% while economic growth barely reaches 3% on the best of years. Somalia is actually getting poorer over time even as the overall economy grows somewhat in the long term.

The Federal government's budget was 69% domestic revenue in 2017 and this has fallen every year since to about 38% this year. Somalia under Farmaajo has actually become much more dependent on aid than it had been 4 years ago. The federal government is less independent today than it was under Xasan Culusow.

Just a sad situation all around.
World Bank Macro Poverty Outlook

somalia gdp.png
somalia gdp 2.png
 

Thegoodshepherd

Galkacyo iyo Calula dhexdood
Staff Member
@Thegoodshepherd the next genwdation of western somali kids arent gonna be sending money back home en masse like their parents. how do you think it will effect the somali economy?

Not good, not good at all. Remittances are 1/3 of Somalia's GDP, a slow constant decline in that means the GDP per capita does not grow even if GDP growth hits 5% consistently.
 
Not good, not good at all. Remittances are 1/3 of Somalia's GDP, a slow constant decline in that means the GDP per capita does not grow even if GDP growth hits 5% consistently.
This is so crazy why did we get to this level tgere need to be revolution where the young take over
 

Yonis

Puntland Youth Organiser
FKD Visionary
VIP
Somalia is a service economy, if you subtract the foreign aid and remittances. Personally i wouldn't call it a service economy but a 'isbaaro' economy.

Mainly warlords in Mogadishu causing instability before selling you the protection from the instability they caused through private security companies. It's a racket for them, and they have no incentive to change things
 

Yonis

Puntland Youth Organiser
FKD Visionary
VIP
Things might look bad now, but you wait until Ethiopia dams the Shabelle River in the future.

That will cause all hell to break loose.

Hopefully Puntland will not accept any refugees
 
SL is slowly prospering even without recognition currently, look at how Berbera is becoming an ever greater generator to our GDP despite not being the main economic hub of JSL
 
SL is slowly prospering even without recognition currently, look at how Berbera is becoming an ever greater generator to our GDP despite not being the main economic hub of JSL
How many people does a Port employ lol. SL is no better, there are no jobs in Somaliweyne.
 
theres only farming, but the people dont wanna farm
No farming in most of Somaliweyne, its mostly in Southern regions. Thank God Harti have a presence in Jubaland , we will use it to our advantage.

The main method of development is resource production, there is little to no functioning mines of any size in Somalia. Its starting to pick up in Sanaag mountains however that needs investment.
 

0117

Reborn
Have patience :lawd:
So long as the gov continues to build up and institutions are set it will lead to prosperity in no time.
 

Som

VIP
SL is slowly prospering even without recognition currently, look at how Berbera is becoming an ever greater generator to our GDP despite not being the main economic hub of JSL
Your country has 75% youth unemployment rate, your young countryman make up a huge percentage of somalis who do tahriib and reach Europe. Once in Europe your fellow landers claim to be from Somalia to boost their chances of getting asylum. That's not really something a prosperous country would have
 

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