How is South Sudan's economy more than10x bigger than Somalia?

[Nilotic]

It might not look like it now, but my people are incredible; we were the only people in all of Sudan that did not surrender and kow-tow to the Arabs -- and lost millions of people as a result.

We inspired and actively organised the Beja, the Darfurians, Blue Nile and the Nuba Mountains to stand up to the Afro-Arabs in Khartoum -- and they now all have seats at the table as a result; we sent troop contingents to the Beja and that's how they were able to create an armed resistance in Eastern Sudan; even the Nubians in the far North wanted to join the fight against Arab domination in Sudan but we couldn't supply them due to logistical constraints.

Prior to the war in December of 2013, we were the only migrant community in Australia that had a net outflow back to their Country of origin.

Unlike a huge chunk of West and East Africa, our people never made the perilous journey across the Sahara to the Mediterranean in order to enter Europe.

I love my people and I know that we will overcome all of this; our resilience and strength will see to it. Periods of prolonged war have chipped away at our moral fibre but we will recover who we once were.

 

[Shimbiris]

What planet are you on? What industries do you think contribute to 14 billion in Somalia’s economy? Dahabshiil? Banana exports? 14 billion is way far off than 950 million.

Why are you arguing with stats? Your 900 million number is a stat from 1990 and the 13 billion number is a stat from 2019. Unless you can prove either is somehow inaccurate or fabricated I'd just take them at face value.

 

[Ahmedahmed5000]

South Sudan
GDP: 4 Billion
Population: 11 million

Somalia
GDP: 950 million. The only country in Africa without a 'B'!
Population: 16 million

Anyone else surprised by this? A landlocked country with a WORSE history of violence yet still 10x more prosperous than Somalia?

There is truly no hope!

Oil

 

[Nilotic]

The obscene compensation package we inked with Khartoum has essentially ended now and the peace agreement is holding; oil production will resume and increase and we should be back to where we were prior to the outbreak of war in 2013.

Our budget will likely be back to the billions very soon -- and we'll be making as much as Kenya when population size is factored in.

 

[mr steal your naag]

South Sudan
GDP: 4 Billion
Population: 11 million

Somalia
GDP: 950 million. The only country in Africa without a 'B'!
Population: 16 million

Anyone else surprised by this? A landlocked country with a WORSE history of violence yet still 10x more prosperous than Somalia?

There is truly no hope!

Forget south sudan. Why does libya-Afghanistan-iraq-palestine have a higher gdp then somalia. Fucking palestine

 

[Nilotic]

Forget south sudan. Why does libya-Afghanistan-iraq have a higher gdp then somalia View attachment 196862View attachment 196863View attachment 196864

With the exception of Afghanistan and Palestine, all those Countries are significant oil producing States and already benefit from some pre-existing infrastructure. It's not fair to compare them to Somalia.

Afghanistan was the recipient of tens of billions of dollars in foreign aid from Western Nations and this is precisely why they have a higher GDP.

Palestine receives aid money and financial assistance from Arab States.

 

[Caaro]

I have to preface this by saying that this nowhere near sound economic advice but I understand how people get to the 14 billion mark.

Let me explain:

If the average Somali spends around $100 a month as disposable income.

That's on average $1200 a year per person in Somalia (averaging out the children, diaspora, businessmen, extremely poor).

Now multiply $1200 a year by the amount of people in Somalia (say 10 million).

12 Billion from consumption alone.

That's a lowball figure that does not include government expenditure, net exports and investment.

most of that money is spent on imports though, like 80% of the wealth in Somalia doesn’t stay in Somalia. It’s spent on imports coming in from other countries.

We rarely produce any domestic products. When somalis are buying clothes it’s usually imported, when we buy furniture and supplies it’s imported, when we buy kitchen ware it’s imported, when we buy cars and tools and just about anything it’s imported.

For every $100 spent by the average somali $60 of it goes to another country’s GDP.

In your GDP calculations you were generous to include all the money that comes into the country through exports and forgot about all the money that leaves through imports.

The worst part is the largest imports in Somalia is khat which is nearly half a billion each year.

 

[Caaro]

this is a trade deficit of more than 3.1 billion dollars lmao.

Why tf are we importing so much clothes??? How hard is it to create textile factories and start making our own clothes? That would incredibly boost the local economy by providing jobs and making clothes cheaper.

 

[Nilotic]

Why was this thread even created? Comparing failed States to each other is the equivalent of boasting about who is drowning less.

 

[Caaro]

Why was this thread even created? Comparing failed States to each other is the equivalent of boasting about who is drowning less.

I think OP was just shocked that despite us having more population and a strategic location for a port that South Sudan was more wealthy than us by a huge margin. Of course he was mistaken but if it was true, it’d be a good thread.

This wouldn’t be who is drowning less, it’d be someone drowning and another in the bottom of the ocean with a rock tied to him lmao.

If south sudan were to be considered a failed state and Somalia was really that worse off, what would Somalia be considered?

 

[0117]

I have to preface this by saying that this nowhere near sound economic advice but I understand how people get to the 14 billion mark.

Let me explain:

If the average Somali spends around $100 a month as disposable income.

That's on average $1200 a year per person in Somalia (averaging out the children, diaspora, businessmen, extremely poor).

Now multiply $1200 a year by the amount of people in Somalia (say 10 million).

12 Billion from consumption alone.

That's a lowball figure that does not include government expenditure, net exports and investment.

Stick to History kkkk

 

[Periplus]

Stick to History kkkk

I did an economics minor in my degree, not history.

I was simply explaining how someone would come up with 14 Billion as an estimate for GDP not making a case for how much our GDP is.

As I said in my preface, not economics advice or analysis by any long shot.

 

[Periplus]

Why was this thread even created? Comparing failed States to each other is the equivalent of boasting about who is drowning less.

Half of the entire forum is people comparing their dusty town to other.

 

[FBIsomalia]

South Sudan
GDP: 4 Billion
Population: 11 million

Somalia
GDP: 950 million. The only country in Africa without a 'B'!
Population: 16 million

Anyone else surprised by this? A landlocked country with a WORSE history of violence yet still 10x more prosperous than Somalia?

There is truly no hope!

They have Oil!!.

 

[Periplus]

most of that money is spent on imports though, like 80% of the wealth in Somalia doesn’t stay in Somalia. It’s spent on imports coming in from other countries.

We rarely produce any domestic products. When somalis are buying clothes it’s usually imported, when we buy furniture and supplies it’s imported, when we buy kitchen ware it’s imported, when we buy cars and tools and just about anything it’s imported.

For every $100 spent by the average somali $60 of it goes to another country’s GDP.

In your GDP calculations you were generous to include all the money that comes into the country through exports and forgot about all the money that leaves through imports.

The worst part is the largest imports in Somalia is khat which is nearly half a billion each year.

Net exports (exports minus imports) which is a part of the GDP calculation means that Somalia will have a negative NX figure, so the equation for GDP will be C+I+G-X.

The negative Net Exports amount for Somalia will have to be subtracted from the total of consumption, investment and government spending in Somalia.

As I said in my preface, I was giving an explanation for how someone would come up with 14 Billion as our GDP.

At the end of the day, I was generous in two directions. While I did not account for net exports, I also essentially sidelined the consumer culture of Somali diaspora that either visit or live in Somalia or the business community's expenditure in Somalia.

The point of the matter is that Somalia's GDP figures are extremely complicated to calculate but it is most certainly above 1 or even 2 Billion USD.

 

[0117]

Net exports (exports minus imports) which is a part of the GDP calculation means that Somalia will have a negative NX figure, so the equation for GDP will be C+I+G-X.

The negative Net Exports amount for Somalia will have to be subtracted from the total of consumption, investment and government spending in Somalia.

As I said in my preface, I was giving an explanation for how someone would come up with 14 Billion as our GDP.

At the end of the day, I was generous in two directions. While I did not account for net exports, I also essentially sidelined the consumer culture of Somali diaspora that either visit or live in Somalia or the business community's expenditure in Somalia.

The point of the matter is that Somalia's GDP figures are extremely complicated to calculate but it is most certainly above 1 or even 2 Billion USD.

Net Exports is the killer
I don't think it's as hard as you make it out to be to calculate the GDP.
Interms of data it can all be collected from xawala companies,imports/exports gov collection and etc.
The only issue I see when it comes to data collection is the informal sector and parts that are hard to reach out to such as AS territory.

 

[Periplus]

Net Exports is the killer
I don't think it's as hard as you make it out to be to calculate the GDP.
Interms of data it can all be collected from xawala companies,imports/exports gov collection and etc.
The only issue I see when it comes to data collection is the informal sector and parts that are hard to reach out to such as AS territory.

Business expenditure and investment could be difficult as we actually don't know the sum of business projects in Somalia. The major projects will be easy to tally up but smaller investments such as construction, real estate etc is a bit trickier.

But net exports will slash our potential GDP in any scenario.

 

[Macalin dheerow]

No one has mentioned GDP per capita

 

[Periplus]

No one has mentioned GDP per capita

We need a census for that my friend.

 

[Macalin dheerow]

We need a census for that my friend.

Well that aint coming anytime soon and I don’t believe the current numbers. I guess we wait