Washington, DC – The International Monetary Fund (IMF) has approved the disbursement of SDR 7.5 million (about US$10 million) to Somalia as part of its Extended Credit Facility (ECF) arrangement. This decision follows a successful review of the country’s economic performance and reform efforts.

Key Points:

Strong Performance: Somalia has made significant strides in implementing economic reforms, including strengthening public financial management, improving revenue mobilization, and building debt management capacity.
Positive Economic Outlook: The country's economic outlook remains positive, with real GDP growth projected to reach 4% in 2024 and 2025. However, challenges such as climate shocks, security risks, and global economic uncertainty persist.
Continued Reforms: The IMF urges Somalia to maintain its reform momentum, particularly in areas such as domestic revenue mobilization, financial sector development, and governance.
Currency Board Arrangement: The IMF supports Somalia's plans to reintroduce the Somali shilling and adopt a currency board arrangement, emphasizing the need for a gradual and carefully managed approach.
Addressing Social and Development Needs: The IMF underscores the importance of addressing social and development challenges, including food security, climate resilience, and education.

The IMF's continued support for Somalia is crucial in helping the country achieve sustainable economic growth and reduce poverty. By implementing the recommended reforms, Somalia can build a more resilient and prosperous future.

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