Somalia Economic Update, May 2026 : Navigating Shocks, Powering Growth

Somalia’s economy demonstrated notable resilience entering 2025, supported by continuous reform efforts to strengthen fiscal sustainability, institutions, and private sector resilience. Low debt levels following HIPC Completion, tax policy changes, and reforms to improve payments system, expand financial sector supervision and anti-money laundering, contributed to better macroeconomic management. Structural reforms in fisheries, telecommunications, and electricity, as well as ongoing harmonization of legal and institutional framework with East African Community (EAC) will improve private sector resilience despite a challenging external environment. These positive foundations underscore Somalia’s progress in strengthening macroeconomic credibility, even as vulnerabilities remain