WB cuts Somalia’s economic growth forecast

The World Bank’s projection of Somalia’s economic growth in 2023 has been cut down from 3,6 percent to a revised 2,8 percent. This is due to several reasons. However, the World Bank placed a huge emphasis on Somalia’s water system.

This information was relayed via the bank’s latest edition of Somalia Economic Update, as seen in the East African news publication, The East African.

As economic activity picks up, Somalia is expected to strengthen over the medium term, with growth estimated to progressively increase to 3,7 percent in 2024 and 3,9 percent in 2025.

The World Bank’s projection of growth decline in the East African country is predicated on the country’s lack of economic diversification, low resistance to natural disasters, and a heavy dependence on foreign aid and businesses.

However, the World Bank’s report titled, Integrating Climate Change with Somalia’s Development: The Case for Water, also made mention of the importance of water to the country’s economy. The report denotes that access to water could be the difference in households absorbing economic shocks or being completely affected.

“Water insecurity, including exposure to floods and droughts, is amplified by environmental degradation, deforestation, and climate change,” said Chantal Richey, World Bank Senior Water Supply and Sanitation Specialist. “Managing water better is critical for helping Somalia cope with climate variability and economic shocks, particularly from floods and droughts.”

The report notes that the country’s vulnerability to climate change, highlights the need for it to develop a better water management system.

“To build a strong economy, Somalia must have fair and effective policies and regulations for managing water resources. — The East African

You Might Also Like

Comments

Take our Survey

We value your opinion! Take a moment to complete our survey