Economy of Somalia

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{city, large, area}
{country, population, people}
{island, water, area}
{rate, high, increase}
{service, military, aircraft}
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{land, century, early}
{water, park, boat}
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According to the CIA and the Central Bank of Somalia, despite experiencing civil unrest, Somalia has maintained a healthy informal economy, based mainly on livestock, remittance/money transfer companies and telecommunications.[1][2] Due to a dearth of formal government statistics and the recent civil war, it is difficult to gauge the size or growth of the economy. For 1994, the CIA estimated the GDP at $3.3 billion.[3] In 2001, it was estimated to be $4.1 billion.[4] By 2009, the CIA estimated that the GDP had grown to $5.731 billion, with a projected real growth rate of 2.6%.[1] According to a 2007 British Chambers of Commerce report, the private sector also grew, particularly in the service sector. Unlike the pre-civil war period when most services and the industrial sector were government-run, there has been substantial, albeit unmeasured, private investment in commercial activities; this has been largely financed by the Somali diaspora, and includes trade and marketing, money transfer services, transportation, communications, fishery equipment, airlines, telecommunications, education, health, construction and hotels.[5] Libertarian economist Peter T. Leeson attributes this increased economic activity to the Somali customary law (referred to as Xeer), which he suggests provides a stable environment to conduct business in.[6]

Contents

Agriculture and natural resources

The Central Bank of Somalia indicates that the country's GDP per capita is $333, which is lower than that of Kenya at $350, but better than that of Tanzania at $280 as well as Eritrea at $190 and Ethiopia at $100. About 43% of the population live on less than 1 US dollar a day, with about 24% of those found in urban areas and 54% living in rural areas.[2]

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