Somalia : 2016 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Somalia

Author/Editor:

International Monetary Fund. Monetary and Capital Markets Department

Publication Date:

February 27, 2017

Electronic Access:

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Summary:

Over the past five years, Somalia has marked important milestones in rebuilding its economy and normalizing relations with international financial institutions. After more than two decades of a civil war that caused significant damage to the country’s social and economic infrastructure, the Federal Government of Somalia (FGS) was elected and recognized by the international community in 2012. With donors’ support, progress is being made in the FGS’s efforts to improve security, capacity development, and state building. However, significant challenges remain ahead to rebuild the economy and institutions and improve social conditions. The IMF resumed its relationship with Somalia in 2013 and has since been heavily involved in the provision of policy advice and technical assistance, particularly in the context of the 12-month Staff-Monitored Program (SMP) which was approved by the IMF Managing Director in May 2016. Despite a very difficult political environment and complex clan politics, the FGS continues to make significant efforts toward restoring its key economic and financial institutions and keeping the SMP on track.