{"id":141002,"date":"2026-05-14T10:02:50","date_gmt":"2026-05-14T10:02:50","guid":{"rendered":"https:\/\/chezaspin.com\/blog\/somalias-economy-to-slow-to-2-8pc-as-costly-fuel-dents-growth\/"},"modified":"2026-05-14T10:02:50","modified_gmt":"2026-05-14T10:02:50","slug":"somalias-economy-to-slow-to-2-8pc-as-costly-fuel-dents-growth","status":"publish","type":"post","link":"https:\/\/chezaspin.com\/blog\/somalias-economy-to-slow-to-2-8pc-as-costly-fuel-dents-growth\/","title":{"rendered":"Somalia\u2019s economy to slow to 2.8pc as costly fuel dents growth"},"content":{"rendered":"<p><strong>Somalia is expected to register a slower growth for the third consecutive year as rising global oil prices add pressure to the country\u2019s strained economy.<\/strong><\/p>\n<p>The latest World Bank Somalia Economic Update projects the country\u2019s economy to grow by 2.8pc this year down from 3pc recorded last year.<\/p>\n<p>This will be the third straight year the country is facing a slower growth after posting 4pc gross domestic product (GDP) in 2023 and 2024.<\/p>\n<p>According to the World Bank the weak growth this year will be constrained by continued aid reductions, climate variability, global price shocks, and limited productive capacity.<\/p>\n<p>\u201cSomalia has made important progress in strengthening macroeconomic management and institutions under difficult conditions,\u201d said Hideki Matsunaga, World Bank Group Country Manager for Somalia.<\/p>\n<p>The bank says the reduction of aid to the East African Community (EAC) member state has had significant social consequences, with food insecurity increasing and poverty reduction stalling.<\/p>\n<p>\u201cHowever, overlapping shocks are slowing growth and putting pressure on jobs and household livelihoods, underscoring the importance of addressing key structural constraints, particularly in expanding access to reliable, affordable, and sustainable electricity,\u201d added Matsunaga.<\/p>\n<p>The bank says the near- to medium-term outlook has weakened relative to earlier expectations with recent global oil price surge adding another shock to Somalia\u2019s economy.<\/p>\n<p>As a result of the global commodity price volatility, Somalia which relies heavily on imported food and fuel and is facing domestic supply disruptions linked to climate and security conditions, inflation is expected to rise to 6pc this year from 3.7pc last year.<\/p>\n<p>Nonetheless, Somalia GDP is projected to bounce to 3.1pc next year supported by improved investment activity increased remittances and urban expansion.<\/p>\n<p>The post <a href=\"https:\/\/www.kbc.co.ke\/somalias-economy-to-slow-to-2-8pc-as-costly-fuel-dents-growth\/\">Somalia\u2019s economy to slow to 2.8pc as costly fuel dents growth<\/a> appeared first on <a href=\"https:\/\/www.kbc.co.ke\/\">KBC Digital<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"<p>Somalia is expected to register a slower growth for the third consecutive year as rising global oil prices add pressure to the country\u2019s strained economy. The latest World Bank Somalia Economic Update projects the country\u2019s economy to grow by 2.8pc this year down from 3pc recorded last year. This will be the third straight year [&hellip;]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-141002","post","type-post","status-publish","format-standard","hentry","category-uncategorized","entry"],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/posts\/141002","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/comments?post=141002"}],"version-history":[{"count":0,"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/posts\/141002\/revisions"}],"wp:attachment":[{"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/media?parent=141002"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/categories?post=141002"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/tags?post=141002"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}