Nigeria’s GDP per capita is same as Somalia

[Maintainnnin]

Somalia's real GDP per-capita is actually 6000 USD . The IMF is using outdated numbers that hasn't beenrebased yet

We can know the exact GDP numbers of Somalia because 98% of the economic transactions of the country uses mobile, because mobile money transactions cover almost all financial activity in Somalia, they provide the most accurate estimate of GDP. meaning it captures almost all economic activity—both formal and informal. Because of this, Somalia’s mobile money transaction volume is a direct reflection of its real GDP, unlike in many other countries where cash and bank transactions are more dominant.

Claiming that Somalia has a GDP per capita of $6,000 or anything close to it is absurd wlh. Just think about it logically, you’re arguing that Somalia is as economically productive as countries like South Africa, Albania, Lebanon and Indonesia , despite our significant institutional and infrastructural deficits compared to them. It really doesn’t add up if you use common sense.

There is a really obvious gap in development that even a layperson would notice just by walking through the streets of those countries compared to Somalia. Without even mentioning the infrastructure, just think of how the primary modes of transport in Somali cities are motorcycles and bajaajs, compared to the much more ubiquitous use of cars in those countries.

And this even before considering figures related to life expectancy, HDI, and other development indicators. You don’t have to be so fantastical when discussing Somalia you know.

 

[Idilinaa]

I'll make it simple. which numbers below do you think is incorrect. below is GDP formula. tell me value of each for you to get 90 billion

GDP =C+I+G+(X-M)

• Household Final Consumption (C): $13,340 million
• Government Final Consumption (G): $759 million
• Gross Fixed Capital Formation (I): $2,699 million
• Exports of Goods and Services (X): $1,804 million
• Imports of Goods and Services (M): $8,182 million

Most of the economic activity is informal and hidden. So those numbers don't relate to what is informal activity. So its under-reported data.

But the stuff about aid and remittances is wrong. Aid goes directly to the government and the government is mostly outside of most of the economy activity in the country. The rest of Somalia is self-sustaining capital wise.

Remittances only account for 6% of transactions and 2% of the total economy. Most of the economic activity is informal and hidden.

I fed Chat GPT the economic report by the UN in 2020.

If we take this and compare the widely held estimates by SNBS and World Bank. The UN gets those figures from mobile money transfer companies that digital track and record data btw. You can also see their estimate of 6% of this being remittances accurately fits the size being sent every year 1.9 billion by the diaspora. If it was inflated so to would be this number.

Also why stated figures in Somalia might be wrong? Is because Somalia's economy is largely informal and much that economic activity is not captured or counted.

But they start to become more fully visible when you look at mobile money transactions as they include both formal and informal activity.

Read through what i quoted above

Claiming that Somalia has a GDP per capita of $6,000 or anything close to it is absurd wlh. Just think about it logically, you’re arguing that Somalia is as economically productive as countries like South Africa, Albania, Lebanon and Indonesia , despite our significant institutional and infrastructural deficits compared to them. It really doesn’t add up if you use common sense.

There is a really obvious gap in development that even a layperson would notice just by walking through the streets of those countries compared to Somalia. Without even mentioning the infrastructure, just think of how the primary modes of transport in Somali cities are motorcycles and bajaajs, compared to the much more ubiquitous use of cars in those countries.

And this even before considering figures related to life expectancy, HDI, and other development indicators. You don’t have to be so fantastical when discussing Somalia you know.

Yeah its between 5000-6000. I'll make a more detailed thread on this. But the numbers don't lie.

You guys don't seem to understand that Somalia has a ridiculous productive and booming large private sector and informal trade economy but at the same time they have a very small weak public sector. Like 90% of the jobs and development in the country is in private sector. It's sprawling with business activity , trade and services. Unlike other countries where government spending and public sector plays a major role.

Infrastructure, public services and institutional stuff is the under taking of the Government. i.e Public sector. Not private citizens and private companies.

The public sector don't even tax a fraction of the economy in the country or re-invest it.

 

[Hilmaam]

Most of the economic activity is informal and hidden. So those numbers don't relate to what is informal activity. So its under-reported data. Read through this:



Read through this.



Yeah its between 5000-6000. I'll make a more detailed thread on this. But the numbers don't lie.

You guys don't seem to understand that Somalia has a ridiculous productive and booming large private sector but at the same time they have a very small weak public sector. Like 90% of the jobs and development in the country. It's sprawling with business activity , trade and services. Unlike other countries where government spending and public sector plays a major role.

View attachment 354603

Infrastructure, public services and institutional stuff is the under taking of the Government. i.e Public sector. Not private citizens and private companies.

The public sector don't even tax a fraction of the economy in the country or re-invest it.

90 billion!! you are saying their is a 70 billion dollar plus hidden economy that exists year after year. i'm speechless

 

[Idilinaa]

90 billion!! you are saying their is a 70 billion dollar plus hidden economy that exists year after year. i'm speechless

If mobile transactions represent 36% of GDP (as in Kenya and other mobile-driven economies), Somalia’s true GDP would be closer to $88-90 billion.

This doesn’t mean an extra $70 billion appears out of nowhere it means the economy was underestimated all along.

Many assume Somalia survives on remittances and aid, but remittances make up just 6% of mobile money transactions ($1.92 billion out of $32 billion). This suggests local business activity is much larger than previously thought.

It actually put's Somalia's government in a bad light because they haven't captured or even made use of it. They could even partner with local private companies to fund and build infrastructure and services. Something governments around the world do called Public-Private Partnership (PPP) since the government lacks funds. Although we are starting to see some of that happening.

 

[Hilmaam]

If mobile transactions represent 36% of GDP (as in Kenya and other mobile-driven economies), Somalia’s true GDP would be closer to $88-90 billion.

This doesn’t mean an extra $70 billion appears out of nowhere it means the economy was underestimated all along.

Many assume Somalia survives on remittances and aid, but remittances make up just 6% of mobile money transactions ($1.92 billion out of $32 billion).

This suggests local business activity is much larger than previously thought.

It actually put's Somalia's government in a bad light because they haven't captured or even made use of it.

I shared gdp formula above.

that number in kenyan report is just a ratio. They are comparing two unrelated things. basically using this formula (mobil money transfer) divided by (kenya gdp) = to get the percentage you are referencing. you are jumping all over place to make crazy conclusion by picking and choosing data points. you are also saying everything is spent digitally then at same time saying there is a 70 billion dollar hidden economy at same time. its mind boggling stuff

 

[Idilinaa]

I shared gdp formula above.

that number in kenyan report is just a ratio. They are comparing two unrelated things. basically using this formula (mobil money transfer) divided by (kenya gdp) = to get the percentage you are referencing. you are jumping all over place to make crazy conclusion by picking and choosing data points. you are also saying everything is spent digitally then at same time saying there is a 70 billion dollar hidden economy at same time. its mind boggling stuff

The number of ''36% of GDP'' i didn't get it from Kenya, i got it from the UN economic report on Somalia. 2.7 billion (32 billlion)

In Kenya the number is actually 42% of GDP. 38.5 billion, $3.21 billion per month

I only mentioned Kenya as an example to show how the math i did for Somalia is reliable, because its the same thing that the world organizations and Kenyan govt , others do for Kenya.

I said almost all transactions or economic activity in Somalia is carried out through digital mobile and not bank or cash. Like 98%. Which is true.

How can mobile money transactions value alone be nearly 3× times the entire GDP if it was 10/11 billion? which would make no sense.

 

[Hilmaam]

The number of ''36% of GDP'' i didn't get it from Kenya, i got it from the UN economic report on Somalia. 2.7 billion (32 billlion)

In Kenya the number is actually 42% of GDP.
View attachment 354604

I only mentioned Kenya as an example to show how the math i did for Somalia reliable, because its the same thing that the world Org's and Kenyan govt , others do for Kenya.

I said almost all transactions or economic activity in Somalia is carried out through digital mobile and not bank or cash. Like 98%. Which is true.

How can mobile money transactions alone be nearly 3× times the entire GDP if it was 10/11 billion? which would make no sense.

44% is ratio comparing two things. It’s just comparison, gdp formula is the gdp formula it’s not some multiplier of Mobil money transfers . The UN IMF all are involved in calculating Somalia gdp so you are picking and choosing

This is report you got Mobil money transactions from this same report states gdp is 7 billion at time. Mobile transactions money which can have same money show up many times is not part of gdp calculations and doesn’t mean 2.7 billion in economic value is generated each month or even 7.5 billion 90/12.

Somalia Economic Update: Rapid Growth in Mobile Money

Somalia’s economy is projected to grow at an annual rate of 3–4 percent, according to the third Somalia Economic Update (SEU) published by the World Bank. Titled “Rapid Growth in Mobile Money: Stability or Vulnerability?”, the SEU assesses Somalia’s vibrant...

www.worldbank.org

 

[Idilinaa]

44% is ratio comparing two things. It’s just comparison, gdp formula is the gdp formula it’s not some multiplier of Mobil money transfers . The UN IMF all are involved in calculating Somalia gdp so you are picking and choosing

This is report you got Mobil money transactions from this same report states gdp is 7 billion at time. Mobile transactions money which can have same money show up many times is not part of gdp calculations and doesn’t mean 2.7 billion in economic value is generated each month or even 7.5 billion 90/12.

Somalia Economic Update: Rapid Growth in Mobile Money

Somalia’s economy is projected to grow at an annual rate of 3–4 percent, according to the third Somalia Economic Update (SEU) published by the World Bank. Titled “Rapid Growth in Mobile Money: Stability or Vulnerability?”, the SEU assesses Somalia’s vibrant...

www.worldbank.org

How is it a ratio? when its valued at 38.5 billion at 44% of GDP by Kenya's national bank= The Central Bank of Kenya, IMF/World bank put Kenya's economy at 89.9 billion at the time. It's the portion of value added to the total GDP, not repeat transfers or multiplier.

Mobile money transactions equivalent of half of Kenya’s GDP

Central Bank of Kenya data shows that mobile money transactions stood at Sh3.98 trillion ($38.5 billion), having increased by Sh346 billion (10%) from 2017.

www.paymentscardsandmobile.com

The report i got my Somalia figures from is from UN IDO financial sector report.

https://downloads.unido.org/ot/21/18/21185699/1_UNIDO_MoCI%20Report%20Financial%20Sector_final.pdf

But the link you just showed me from World Bank echo's pretty much the same thing.

The 7 billion in 2017 is a portions of Somalia's GDP without the informal activity(they rely on formal data). Throughout the report they continuously reference how large portions of Somalia's economic and business activity is not captured due to the fact that it's informal, but it is reflected in the value of mobile money transactions.