IMF concludes ’24 article IV consultation, 2nd review for Somalia

The International Monetary Fund (IMF) has completed the 2024 Article IV Consultation and the second review under Somalia’s Extended Credit Facility (ECF), unlocking an immediate disbursement of SDR 7.5 million (approximately $10 million).

This brings total disbursements under the programme to SDR 45 million ($60 million), supporting Somalia’s economic reform agenda.

Somalia’s real GDP growth forecast has been upgraded to 4 per cent for both 2024 and 2025, driven by strong exports and remittances. Inflation is projected to decline to 4.5 per cent by the end of 2024. However, risks from climate shocks, security challenges, and fluctuating commodity prices persist.

The IMF commended Somalia’s progress on fiscal reforms, including enhanced revenue mobilisation and public financial management. Plans to reintroduce the Somali shilling under a currency board arrangement were highlighted as critical, alongside efforts to improve governance and strengthen anti-money laundering measures.

Continued international support remains essential to achieving Somalia’s goals of reducing poverty, enhancing resilience, and promoting inclusive growth.

Attribution: IMF

Subediting: M. S. Salama