15, (Xinhua/GNA) - The International Monetary Fund (IMF) on Tuesday
projected Somalia's economic growth to strengthen to 3 percent from 2.8 percent
Holland, who led an IMF team discussing Somalia's Article IV program said the
economy continues to recover, supported by vigorous activity in the
construction, telecommunications, and financial services sectors in 2018.
growth is estimated at 2.8 percent, and end-year inflation is estimated at 3.2
percent for 2018. Growth is projected to strengthen to 3.0 percent and
inflation to ease further to 3.0 percent, in 2019," Holland said in a
statement issued in Mogadishu on Tuesday.
IMF warned that the outlook remains vulnerable to the still fragile security
situation, climate shocks and the still developing institutional capacity, and
more is needed to improve economic resilience, increase employment and reduce
The lender said
the government has stepped up efforts to broaden the tax base and strengthen
tax administration which it said has been reflected in increased domestic
revenue, which reached 184 million U.S. dollars in 2018, almost 30 percent
higher than in 2017, and 54 million dollars for the first quarter of 2019.
the overall cash fiscal position remains in surplus, adding that public
financial management continues strengthening, including a sustained improvement
in cash forecasting and reduction in the use of cash advances.
Somalia remains heavily dependent on grants and more efforts will be needed to
create space for critical social and development spending, and put Somalia
clearly on the path to fiscal self-sufficiency," she said.
the team is encouraged by the authorities' further efforts to enhance financial
sector supervision, especially to bring mobile money service providers within
the oversight of the Central Bank of Somalia.
also welcomes progress in strengthening the implementation of the anti-money
laundering and combating the financing of terrorism (AML/CFT) regime, including
the commencement of large transaction reporting and efforts to build capacity
at the Financial Reporting Center.
the authorities to address remaining gaps in AML/CFT regulation," Holland