Skip to content

Devastating Drought to Push Somalia’s Inflation to Near Double Digits

  • Water shortage to have immediate impact on economy, FX market
  • Dry spell to immediately impact on economy, foreign exchange

A devastating drought weighing on Somalia’s economy is poised to push inflation close to 10%, the highest level in more than 15 years, by the end of the year, according to central bank Governor Abdirahman Abdullahi.

The Horn of Africa nation is experiencing its worst drought in four decades, which has started threatening lives and farming activity. More than 7 million people, about half the population, are in need of food aid.