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The Economy of Somalia

Somali Economy

Somalia's map

Economy - overview: Despite the lack of effective national governance, Somalia has maintained a healthy informal economy, largely based on livestock, remittance/money transfer companies, and telecommunications. Agriculture is the most important sector, with livestock normally accounting for about 40% of GDP and about 65% of export earnings. Nomads and semi-pastoralists, who are dependent upon livestock for their livelihood, make up a large portion of the population. Livestock, hides, fish, charcoal, and bananas are Somalia's principal exports, while sugar, sorghum, corn, qat, and machined goods are the principal imports. Somalia's small industrial sector, based on the processing of agricultural products, has largely been looted and sold as scrap metal. Somalia's service sector also has grown. Telecommunication firms provide wireless services in most major cities and offer the lowest international call rates on the continent. In the absence of a formal banking sector, money transfer/remittance services have sprouted throughout the country, handling roughly $2 billion in remittances annually. Mogadishu's main market offers a variety of goods from food to the newest electronic gadgets. Hotels continue to operate and are supported with private-security militias. Somalia's arrears to the IMF continued to grow in 2008. Statistics on Somalia's GDP, growth, per capita income, and inflation should be viewed skeptically.

GDP:

GDP - real growth rate: 2.6% (2008 est.) 2.6% (2007 est.) 2.6% (2006 est.)

GDP - per capita:

GDP - composition by sector: agriculture: 65% industry: 10% services: 25% (2000 est.)

Population below poverty line:

Household income or consumption by percentage share: lowest 10%: NA% highest 10%: NA%

Distribution of family income - Gini index:

Inflation rate (consumer prices):

Labor force: 3.7 million (few skilled laborers) (1975)

Labor force - by occupation: agriculture: 71% industry and services: 29% (1975)

Unemployment rate: NA%

Budget: revenues: $NA expenditures: $NA

Industries: a few light industries, including sugar refining, textiles, wireless communication

Industrial production growth rate: NA%

Electricity - production: 280 million kWh (2006 est.)

Electricity - production by source:

Electricity - consumption: 260.4 million kWh (2006 est.)

Electricity - exports: 0 kWh (2007 est.)

Electricity - imports: 0 kWh (2007 est.)

Oil - production: 0 bbl/day (2007 est.)

Oil - consumption: 5,040 bbl/day (2006 est.)

Oil - exports: 0 bbl/day (2005)

Oil - imports: 4,772 bbl/day (2005)

Oil - proved reserves: 0 bbl (1 January 2006 est.)

Natural gas - production: 0 cu m (2007 est.)

Natural gas - consumption: 0 cu m (2007 est.)

Natural gas - exports: 0 cu m (2007 est.)

Natural gas - imports: 0 cu m (2007 est.)

Natural gas - proved reserves: 5.663 billion cu m (1 January 2008 est.)

Agriculture - products: bananas, sorghum, corn, coconuts, rice, sugarcane, mangoes, sesame seeds, beans; cattle, sheep, goats; fish

Exports: $300 million f.o.b. (2006)

Exports - commodities: livestock, bananas, hides, fish, charcoal, scrap metal

Exports - partners: UAE 50.7%, Yemen 21%, Oman 6.1% (2007)

Imports: $798 million f.o.b. (2006)

Imports - commodities: manufactures, petroleum products, foodstuffs, construction materials, qat

Imports - partners: Djibouti 34.4%, India 9.1%, Kenya 9%, Oman 6%, UAE 5.6%, Yemen 5.5% (2007)

Debt - external: $3 billion (2001 est.)

Economic aid - recipient:

Currency:

Currency code:

Exchange rates: Somali shillings (SOS) per US dollar - NA (2007-08), 1,438.3 (2006) official rate; the unofficial black market rate was about 23,000 shillings per dollar as of February 2007 note: the Republic of Somaliland, a self-declared independent country not recognized by any foreign government, issues its own currency, the Somaliland shilling

Fiscal year: