World Bank says Somalia economy to contract by 1.5 pct in 2020

The World Bank said Wednesday Somalia's economy is projected to contract by 1.5 percent in 2020 due to negative impacts of Covid-19, the locust infestation and extreme flooding, down from earlier estimates of 3.2 percent before the pandemic. The latest World Bank Somalia Economic Update says Covid-19 has impacted all sectors of the economy, leading to declines in revenue for both federal and state governments.

The lender said the onset of the pandemic interrupted the nascent rebound in the economy that had begun since 2016/17, following a recovery from earlier droughts and narrowed the 2.9 percent GDP growth gains in 2019.

The World Bank said, however, as the effects of COVID-19 wane over the medium term, the economy is expected to pick up moderately to 2.9 percent in 2021 and reach pre-COVID-19 levels of 3.2 percent by 2022.