World Bank Predicts Surging GDP Growth for Somalia and Ethiopia

Somalia and Ethiopia Forecasted for Robust GDP Growth, Says World Bank

MOGADISHU, Somalia – The World Bank anticipates that Somalia and Ethiopia, despite being low-income territories, will see impressive GDP gains and potentially stand out in Africa.

The June assessment predicts Somalia’s GDP at 3.7 percent, up from last year’s 3.1 percent. Ethiopia could clock in at 7 percent. These figures shine brightly across the continent, according to the global financial institution.

Compared to January’s review, Somalia and Ethiopia’s economic outlooks improve by 0.2 and 0.6 percent, suggesting better economic fortunes this year.

Projections for next year show Somalia, grappling with extremism, inter-clan strife, and political turmoil, might achieve a 3.9 percent GDP increase, per World Bank’s forecast.

After a sluggish 3.8 percent growth in low-income countries last year, the lender now sees a rebound to five percent this year, potentially averaging 5.4 percent between 2025 and 2026, the report details.

“However, these averages reflect significant downward adjustments from January projections, mainly due to persistent conflict and delays in recovery in severely-affected conflict zones,” the World Bank states.

Despite governance hiccups, political stability has improved in many long-struggling African nations. Somalia and Ethiopia have enhanced the domestic manufacturing of goods and services.

The international organization also observes that numerous countries remain stuck with chronic vulnerabilities, particularly in the Sahel region, where violence has surged over the past year.

“High levels of violence and severe weather have led to displacement, disrupted food supplies, and worsened poverty. Many low-income countries face tough policy decisions. Limited policy space to aid the poor and high financing needs, combined with scanty new funding options, jeopardize debt sustainability.”

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