According to the International Monetary Fund IMF report, Somalia's economy is recovering, and the GDP growth is projected at 3.1 percent and end-year inflation at 3.5 percent.
However, further efforts are needed to secure economic resilience and reduce poverty in the horn of the Africa nation.
The report released on Tuesday dubbed "IMF Management of the First Review under the Staff-Monitored Program with Somalia" said that since 2017, growth has rebounded, inflation has slowed, and the trade deficit has narrowed.
"For 2018, The exchange rate has remained stable. But further efforts are needed to improve economic conditions, increase employment and make a significant reduction in poverty," IMF said in an online report.
The international financial institution has called upon the development and humanitarian partners to closely work with the Somali authorities on enhancing the country's resilience.
The IMF also praised efforts by the federal government to improve domestic revenue mobilization saying an increase of 31 percent revenue collection has been registered since last year.