Somalia Economy was originally a socialist economy. The economy underwent several market oriented reforms till 1991. Somalia adopted the structural modifications to promote growth in sales and production.
Another objective of embracing these reforms were to permit the market, to regulate different segments of economy instead of permitting the Government doing so.
Somalia’s agriculture sector is the most prominent sector of the economy, accounting for 60% of the gross domestic product or GDP.
The main agricultural crops comprise sorghum, sugar and corn. Other agricultural products of Somalia include sesame seeds, coconut, bananas, beans and mangoes.
Livestock, comprises 2/3rd of the economic value of agricultural production. 2/3rd of revenues from exports is also contributed by livestock.
50% of Somalia’s population is constituted by the nomads. These nomads are responsible for producing livestock. People of Somalia harvest fish for consumption, although not on a very large scale.
The industrial segment was never very eventful in Somalia and accounted for 10% of the gross domestic product. However, the industrial yield further declined and presently accounts for only 5% of the gross domestic product. The industrial segment mainly comprises of industries which are involved in processing of agricultural products. Somalia experiences constant fears of famine and food shortfalls especially when Somalia is plagued by drought.
Last Updated on : 25th June 2013