© 2026. World Bank Group This work is a product of the staff of The World Bank Group with external contributions. The findings, interpretations, and conclusionsexpressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governmentsthey represent. The World Bank Group does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, andother information shown on any map in this work do not imply any judgment on the part of The World Bank Group concerning thelegal status of any territory or the endorsement or acceptance of such boundaries. Rights and PermissionsThe material in this work is subject to copyright. Because The World Bank Group encourages dissemination of its knowledge, this work may be reproduced, in whole or in part, for noncommercial purposes as long as full attribution to this work is given. Attribution:Please cite the work as follows: “World Bank Group. 2026. Somalia Economic Update, May 2026: Navigating Shocks,Powering Growth.” All queries on rights and licenses should be addressed to World Bank Group Publications, The World Bank Group, 1818 H Street NW,Washington, DC 20433, USA; e-mail: pubrights@worldbank.org TABLE OF CONTENTS Acronyms.......................................................................................................................................................................................................................................iForeword........................................................................................................................................................................................................................................iiHordhac ...........................................................................................................................................................................................................................................iiiAcknowledgements.................................................................................................................................................................................................................ivExecutive Summary..................................................................................................................................................................................................................vSoo Koobid Fulinta.................................................................................................................................................................................................................... viii CHAPTER 1: RECENT ECONOMIC DEVELOPMENTS AND OUTLOOK.......................................................................................................1 Global and Regional Environment................................................................................................................................................................................2Recent Economic Developments in Somalia........................................................................................................................................................2Despite positive momentum in recent years, economic growth has decelerated............................................................................2Inflationary pressures have increased..................................................................................................................................................................4Poverty reduction efforts were interrupted by declining humanitarian support and climate shocks.....................................4External pressures heightened amid aid cuts...................................................................................................................................................6Financial intermediation is gradually expanding supported by continued strengthening of financial sector institutions.......7Fiscal position weakened amid declining external grants and lackluster revenue performance...............................................8Medium-Term Outlook, Risks and Reform Priorities........................................................................................................................................ 11 CHAPTER 2: BOOSTING ACCESS TO ELECTRICITY............................................................................................................................................. 17 Status of Electricity Sector................................................................................................................................................................................................... 18Access of Population to Electricity............................................................................................................................................................................... 2