Somalia’s domestic revenue rose to $404.3 million in 2025, more than doubling from $183 million recorded in 2018, even as economic growth slowed to 3.1% from 4% a year earlier, according to the country’s 2026 Economic Report.
The figures highlight progress in the Federal Government of Somalia’s domestic revenue collection over the seven-year period, alongside a moderation in the pace of economic expansion.
The report was launched in Mogadishu on Tuesday, October 27, as officials and other stakeholders gathered to discuss ways of financing sustainable economic growth and strengthening domestic revenue mobilisation.
The increase in revenue from $183 million in 2018 to $404.3 million in 2025 represents a rise of approximately 121%, indicating that the government collected substantially more revenue from domestic sources over the period.
Stronger domestic revenue collection can provide governments with greater capacity to finance public services and development programmes while reducing reliance on external sources of funding. However, the report’s headline figures do not, on their own, establish how much of the increase resulted from improved tax administration, changes in economic activity, or other factors.
Somalia’s economic growth slows
Despite the increase in domestic revenue, Somalia’s economy grew at a slower pace in 2025.
According to the report, gross domestic product (GDP) expanded by 3.1%, down from 4% in 2024. This represents a decline of 0.9 percentage points in the annual growth rate.
GDP growth measures the change in the value of goods and services produced within an economy over a given period. A slower growth rate indicates that economic output expanded at a more moderate pace than in the preceding year, rather than necessarily indicating that the economy contracted.
The report’s figures therefore present two developments: an increase in the government’s domestic revenue collection and a deceleration in the overall rate of economic growth.
The available summary does not specify the factors behind the slowdown or provide a sector-by-sector breakdown of economic performance in 2025.
The report was launched as part of the fourth annual CV2060 Roundtable, held at the Jazeera Palace Hotel in Mogadishu on October 27 and 28.
The discussions focused on financing sustainable economic growth and strengthening domestic revenue, placing government revenue mobilisation among the key issues under consideration.
Domestic revenue is an important source of public financing because it can help governments fund expenditure using resources collected within their own economies. Sustained improvements in collection can also support budget planning and the delivery of public services.
However, the scale of revenue growth needs to be considered alongside expenditure requirements, the size of the economy and the government’s overall financing needs to establish how far the additional collections translate into greater fiscal capacity.