Economy — Somalia
GDP, employment, industries, public finance, and currency.
Profile updated 2026-06-02
⚡ Economy at a glance
GDP, employment, industries, public finance, and currency. Key figure for Somalia: Somalia has faced significant economic challenges, largely due to decades of conflict, political instability, and natural disasters. 1. Informal Economy: Somalia's economy is largely characterized by the informal sector. Informal trade, livestock herding, and remittances from the Somali diaspora play crucial roles…
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Economic overview
- Economic Overview
- and natural disasters. 1. Informal Economy: Somalia's economy is largely characterized by the informal sector. Informal trade, livestock herding, and remittances from the Somali diaspora play crucial
- roles in sustaining the economy. 2. Agriculture and Livestock: Agriculture, including livestock farming, is a key component of Somalia's economy. Livestock exports, particularly of goats and sheep, are significant contributors to the country's income. However, the sector faces challenges s
- uch as droughts and inadequate infrastructure. 3. Remittances: Remittances from Somalis living abroad are a major source of income for many households. These funds contribute significantly to poverty alleviation
- and economic stability. 4. Political and Security Challenges: Persistent political instability and security challenges, including the presence of militant groups, have hampered economic development. The lack of a stable government has impeded infrastru
- cture development and foreign investment. 5. Financial System: Somalia has a cash-based economy, with limited access to formal banking services. Mobile money services have gained popularity, providing a means for financial transactions in areas with l
- imited banking infrastructure. 6. Humanitarian Aid Dependency: The country has been dependent on humanitarian aid due to recurring droughts, famine, and displacement caused by conflict. Humanitarian efforts play a crucial role in addressing immedi
- ate needs and supporting resilience. 7. Oil and Gas Potential: Somalia has potential oil and gas reserves off its coast, but exploration and development have been hampered by maritime
- disputes and security concerns. 8. Infrastructure Challenges: Decades of conflict have left Somalia with inadequate infrastructure, including roads, ports, and telecommunications. Rebuilding these essential structures is
- crucial for economic development. 9. International Assistance: International organizations and donor countries provide assistance to Somalia in various forms, including development aid, capacity-building,
- and humanitarian relief. 10. Economic Reforms: Efforts to rebuild the economy include economic reforms and institution-building initiatives. However, progress has been slow due to the complex political situation.
- Industries
a few light industries, including sugar refining, textiles, petroleum refining (mostly shut down), wireless communication
- GDP - per capita (PPP)
$400.00 (USD)
- GDP - real growth rate
2.6%
GDP & growth
- GDP - Gross Domestic Product (PPP)
$13,190,000,000 (USD)
- GDP Per Capita
$400.00 (USD)
- GDP - real growth rate
2.6%
- GDP - official exchange rate
$5,800,000,000 (USD)
- GDP - composition, by end use
- household consumption: 72.7%
- government consumption: 8.7%
- investment in fixed capital: 19.9%
- investment in inventories: 0.4%
- exports of goods and services: 0.3%
- imports of goods and services: -1.7%
- GDP by Sector- agriculture
60.2%
- GDP by Sector- Industry
7.4%
- GDP by Sector- services
32.5%
Prices & money
- Exchange Rate per US Dollar
Somali shilling (SOS)
- Currency Name and Code
Somali Shilling (SOS)
Employment & labor
- Labor Force
3,447,000
- Major Industries
a few light industries, including sugar refining, textiles, petroleum refining (mostly shut down), wireless communication
- Agriculture Products
- cattle, sheep, goats
- bananas, sorghum, corn, coconuts, rice, sugarcane, mangoes, sesame seeds, beans
- fish
- Child Labor - # of children ages 5-14
1,148,265
- Child Labor - % of children ages 5-14
49%
Public finance
- Annual Budget
$0 (USD)