IMF reaches staff-level deal with Somalia to release $10 million

Mogadishu: The International Monetary Fund (IMF) said it has reached a staff level agreement with Somalia on the third review under the Extended Credi...

Mogadishu: The International Monetary Fund (IMF) said it has reached a staff-level agreement with Somalia on the third review under the Extended Credit Facility arrangement.

The IMF said in a statement issued on Friday evening that the deal would see the lender unlock 10 million U.S. dollars, which is subject to approval of the IMF Executive Board.

"Continued external assistance from multilateral and bilateral partners remains crucial to support the authorities' policy efforts, especially in light of the high uncertainty and significant downside risks," the IMF said.

The lender estimated a 4 percent growth in Somalia's real gross domestic product in 2024, driven by continued agricultural recovery, while inflation is expected to ease to 5.6 percent by the end of 2024, supported by lower global commodity prices.

The IMF, however, said the country's economic outlook in 2025 is clouded by foreign aid cuts, irregular rainfalls and high uncertainty in the country.