Somali Economy Shrinks Due to "Corona"

  • Mogadishu, Federal Republic of Somalia
  • 27 April 2020

Markets in Somalia are witnessing a commercial recession after the closing of the airspace, and the decline in import traffic from the port of Mogadishu (the largest port in Somalia), which was receiving daily large ships carrying hundreds of large and medium containers.

The Corona pandemic paralyzed the economies of the world, especially the Chinese market, which was the main market for Somali merchants to import consumer and office goods, clothing, parts, and electronics. In addition to the suspension of import from Arab ports after the inclusive closure witnessed by several Gulf countries.

According to official statistics, 80 percent of Somali merchants were dependent on Chinese goods, but the stopping of imports from China towards the country stoked the high prices of goods and commodities in the markets of Mogadishu, which tightens the screws on poor families affected by humanitarian disasters, including floods and droughts.

The greatest danger to the economy that Somalia faces is the decline in the services of Somali money companies and remittances, many of them disappeared from the market due to economic and financial conditions, and what remained of them are threatened to close due to the stoppage of the movement of capital that was taking place via planes to and from Mogadishu.

The money sent from abroad to Somalia is estimated at one billion and eight hundred million dollars, which was supporting the wheel of economic growth in the country, which lacks strong economic supports, given the decline in domestic production and the increasing demand for products imported from abroad.

Source (New Arab newspaper, Edited)

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