Flag description:
light blue with a large white five-pointed star in the center; blue
field influenced by the flag of the UN
Government - note:
although an interim government was created in 2004, other regional
and local governing bodies continue to exist and control various
cities and regions of the country, including the self-declared
Republic of Somaliland in northwestern Somalia, the semi-autonomous
State of Puntland in northeastern Somalia, and traditional clan and
faction strongholds
Economy Somalia
Economy - overview:
Somalia's economic fortunes are driven by its deep political
divisions. The northwestern area has declared its independence as
the "Republic of Somaliland"; the northeastern region of Puntland is
a semi-autonomous state; and the remaining southern portion is
riddled with the struggles of rival factions. Economic life
continues, in part because much activity is local and relatively
easily protected. Agriculture is the most important sector, with
livestock normally accounting for about 40% of GDP and about 65% of
export earnings, but Saudi Arabia's ban on Somali livestock, due to
Rift Valley Fever concerns, has severely hampered the sector. Nomads
and semi-nomads, who are dependent upon livestock for their
livelihood, make up a large portion of the population. Livestock,
hides, fish, charcoal, and bananas are Somalia's principal exports,
while sugar, sorghum, corn, qat, and machined goods are the
principal imports. Somalia's small industrial sector, based on the
processing of agricultural products, has largely been looted and
sold as scrap metal. Despite the seeming anarchy, Somalia's service
sector has managed to survive and grow. Telecommunication firms
provide wireless services in most major cities and offer the lowest
international call rates on the continent. In the absence of a
formal banking sector, money exchange services have sprouted
throughout the country, handling between $500 million and $1 billion
in remittances annually. Mogadishu's main market offers a variety of
goods from food to the newest electronic gadgets. Hotels continue to
operate, and militias provide security. The ongoing civil
disturbances and clan rivalries, however, have interfered with any
broad-based economic development and international aid arrangements.
Somalia's arrears to the IMF continued to grow in 2005. Statistics
on Somalia's GDP, growth, per capita income, and inflation should be
viewed skeptically. In late December 2004, a major tsunami caused an
estimated 150 deaths and resulted in destruction of property in
coastal areas.
GDP (purchasing power parity):
$4.809 billion (2005 est.)
GDP (official exchange rate):
$2.483 billion
GDP - real growth rate:
2.4% (2005 est.)
GDP - per capita (PPP):
$600 (2005 est.)
GDP - composition by sector: agriculture: 65% industry: 10% services: 25% (2000 est.)
Labor force: 3.7 million (very few skilled laborers)