Somalia’s economy, estimated at $7 billion, relies on agriculture, particularly livestock, which accounts for 60% of GDP and exports camels and goats. Fisheries, with untapped potential, and remittances (25% of GDP) are vital. Telecoms, driven by mobile money, is an emerging sector, alongside small-scale trade. Oil and gas exploration shows promise but faces delays. Conflict, piracy, and weak governance limit growth, but diaspora investment and international aid support recovery. Infrastructure and security improvements are critical to unlocking Somalia’s resource wealth.
Somalia Economy Size
Somalia’s economy, worth $7 billion, is among the smallest, with agriculture and remittances driving its GDP, limited by conflict. See Somalia GDP.
Somalia Purchasing Power Parity (PPP)
Somalia’s economy has a PPP GDP of $25 billion, over three times its $7 billion nominal GDP, due to low costs for agriculture and remittances. PPP per capita is around $1,400, among the lowest globally, reflecting extreme poverty. Conflict limits PPP benefits, with domestic pricing supporting subsistence activities.
Somalia Growth Rate
The economic growth rate is 2.0% in 2024, driven by livestock exports and remittances. Telecom growth and informal trade support activity, but conflict and piracy limit gains. International aid drives resilience, while resource potential enhances momentum, positioning the economy for modest recovery if stability improves.
Somalia Inflation
Somalia’s inflation rate is about 8% in 2024, driven by conflict-related supply disruptions and reliance on imported food and fuel. Currency depreciation and weak agricultural output increase prices, while limited governance fuels volatility. Remittances mitigate shortages, but persistent insecurity keeps inflation high, impacting basic goods.
