The World Bank said 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 COVID-19 has impacted all sectors of the economy, leading to declines in revenue for both federal and state governments, according to the latest World Bank Somalia Economic Update on Wednesday.
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.
“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,” said the World Bank.
