Tuesday September 14, 2021
NAIROBI (HOL) - Economic growth in Somalia is set to rebound to 2.4 percent this year following the adverse effects of COVID-19, locust infestations and extreme flooding, the World Bank has said.
The global lender said Tuesday during the launch of the 6th Somalia Economic Update that the Horn of Africa nation held out against the triple effects and only shrunk by 0.4 percent in 2020, less severe than the 1.5 percent contraction projected at the onset of the global pandemic.
The report notes that Somalia had higher than expected aid flows and remittances, which, coupled with the government's fiscal policy measures and social protection, cushioned the economy from the adverse effects of the triple shock.
World Bank country manager for Somalia Kristina Svensson said the country must safeguard this stability through job creation and other forms of productivity.
As Somalia embarks on the road to recovery from the triple shocks, policy interventions that raise productivity, create jobs and expand pro-poor programs will be key," said Svensson. "Creating jobs and ensuring that the most vulnerable are supported throughout the crisis need to be at the center of policy action and private sector response."
The 6th Edition of the Somalia Economic Update, which focuses on investments in health for growth, notes that the COVID-19 pandemic has brought the sector under sharp focus and put investing in Somalia's health system as an urgent political and economic consideration that is foundational to reducing fragility.
The report also notes that strengthening Somalia's health system is one of the biggest direct influences on improving human development and enhancing economic growth in the country.
The report recommends opportunities in health financing, health service delivery and stewardship to improve Somalia's health sector.
Incoming funding from the World Bank is aimed at helping Somalia focus on high-impact, cost-effective interventions that target the primary burdens of disease.