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
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