Economy
GDP (2005 est.): U.S. $4.809 billion.
Annual growth rate (2005 est.): 2.4%.
Per capita GDP (2005 est.): $600.
Avg. inflation rate: N/A.
Natural resources: Largely unexploited reserves of iron ore, tin, gypsum, bauxite, uranium, copper, and salt; likely petroleum and natural gas reserves.
Agriculture: Products--livestock, fish, bananas, corn, sorghum, sugar. Arable land--13%, of which 2% is cultivated.
Industry: Types--Telecommunications, livestock, fishing, textiles, transportation, and limited financial services. Somalia's surprisingly innovative private sector has continued to function despite the lack of a functioning central government since 1991.
Trade: Exports--$241 million (f.o.b., 2004 est.): livestock, bananas, hides, fish, charcoal, scrap metal. Major markets--United Arab Emirates, Yemen, Oman. Imports--$576 million (f.o.b., 2004 est.): food grains, animal and vegetable oils, petroleum products, construction materials, manufactured products, qat. Major suppliers--Djibouti, Kenya, Brazil, India, United Arab Emirates, Oman.
Primary aid donors--United States, European Union, Australia, Canada, Denmark, France, Germany, Italy, Japan, Netherlands, Norway, Sweden, Switzerland, United Kingdom.
Remittances (2006 est.): $800 million to $1 billion.

GEOGRAPHY
Somalia is located on the east coast of Africa on and north of the Equator and, with Ethiopia, Eritrea, Djibouti, and Kenya, is often referred to as the Horn of Africa. It comprises Italy's former Trust Territory of Somalia and the former British Protectorate of Somaliland (now seeking recognition as an independent state). The coastline extends 2,720 kilometers (1,700 mi.).

The northern part of the country is hilly, and in many places the altitude ranges between 900 and 2,100 meters (3,000 ft.-7,000 ft.) above sea level. The central and southern areas are flat, with an average altitude of less than 180 meters (600 ft.). The Juba and the Shabelle Rivers rise in Ethiopia and flow south across the country toward the Indian Ocean. The Shabelle, however, does not reach the sea.

Major climatic factors are a year-round hot climate, seasonal monsoon winds, and irregular rainfall with recurring droughts. Mean daily maximum temperatures range from 30^oC to 40^oC (85^o F-105^oF), except at higher elevations and along the east coast. Mean daily minimums usually vary from about 15^oC to 30^oC (60^oF-85^oF). The southwest monsoon, a sea breeze, makes the period from about May to October the mildest season in Somalia. The December-February period of the northeast monsoon also is relatively mild, although prevailing climatic conditions in Somalia are rarely pleasant. The "tangambili" periods that intervene between the two rainy seasons (October-November and March-May) are hot and humid.

SOMALIA ECONOMY
Somalia lacks natural resources and faces major development challenges, and recent economic reverses have left its people increasingly dependent on remittances from abroad. Its economy is pastoral and agricultural, with livestock--principally camels, cattle, sheep, and goats--representing the main form of wealth. Livestock exports in recent years have been severely reduced by periodic bans, ostensibly for concerns of animal health, by Arabian Peninsula states. Drought has also impaired agricultural and livestock production. Because rainfall is scanty and irregular, farming generally is limited to certain coastal districts, areas near Hargeisa, and the Juba and Shabelle River valleys. The agricultural sector of the economy consists mainly of banana plantations located in the south, which has used modern irrigation systems and up-to-date farm machinery.

A small fishing industry exists in the north where tuna, shark, and other warm-water fish are caught, although fishing production is seriously affected by poaching. Aromatic woods--frankincense and myrrh--from a small and diminishing forest also contribute to the country's exports. Minerals, including uranium and likely deposits of petroleum and natural gas, are found throughout the country, but have not been exploited commercially. Petroleum exploration efforts have ceased due to insecurity and instability. Illegal production in the south of charcoal for export has led to widespread deforestation. With the help of foreign aid, small industries such as textiles, handicrafts, meat processing, and printing are being established.

The absence of central government authority, as well as profiteering from counterfeiting, has rapidly debased Somalia's currency. By the spring of 2002, the Somali shilling had fallen to over 30,000 shillings to the U.S. dollar. The self-declared Republic of Somaliland issues its own currency, the Somaliland shilling, which is not accepted outside of the self-declared republic.

There are no railways in Somalia; internal transportation is by truck and bus. The national road system nominally comprises 22,100 kilometers (13,702 mi.) of roads that include about 2,600 kilometers (1,612 mi.) of all-weather roads, although most roads have received little maintenance for years and have seriously deteriorated.

Air transportation is provided by small air charter firms and craft used by drug smugglers. A number of airlines operate from Hargeisa. Some private airlines, including Daallo Airlines, serve several domestic locations as well as Djibouti and the United Arab Emirates. The UN and other NGOs operate air service for their missions.

The European Community and the World Bank jointly financed construction of a deepwater port at Mogadishu (currently closed). The Soviet Union improved Somalia's deepwater port at Berbera in 1969. Facilities at Berbera were further improved by a U.S. military construction program completed in 1985, but they have since become dilapidated. During the 1990s the United States renovated a deepwater port at Kismayo that serves the fertile Juba River basin and is vital to Somalia's banana export industry. Smaller ports are located at Merca, Brava, and Bossaso. Absence of security and lack of maintenance and improvement are major issues at most Somali ports.

Radiotelephone service is available to both to regional and international locations. The public telecommunications system has been destroyed or dismantled, but cellular phone service is readily available throughout the country. Somalia is linked to the outside world via ship-to-shore communications (INMARSAT) as well as links to overseas satellite operators by private telecommunications operators (including cellular telephone systems) in major towns. Radio broadcasting stations operate at Mogadishu, Hargeisa, and Galkaiyo, with programs in Somali and some other languages. There are two television broadcast stations in Mogadishu and one in Hargeisa.

DEFENSE
There are no Somali armed forces. Prior to 1991, the Somali National Army was made up of the army, navy, air force, and air defense command. The Transitional Federal Government and other various groups throughout Somalia are estimated to control militias ranging in strength from hundreds to thousands. Some groups possess limited inventories of older armored vehicles and other heavy weapons, and small arms are prevalent throughout Somalia.