The economy of Somalia has, despite civil unrest, maintained a healthy informal economy, based mainly on livestock, remittance/money transfer companies, and telecommunications.
Mogadishu is the largest city in Somalia and the nation’s capital. Mogadishu is the commercial and financial center of Somalia. Although the economy has recovered somewhat from the civil unrest, the Somali Civil War still presents many problems. The effective absence of government yields free trade without taxes or regulatory expenditures, but comes at the cost of civil society and infrastructure. Businesses have hired armed militias to provide security against gunmen, leading to a gradual reduction in open street violence. However, high levels of crime including frequent murders and occasional bombings are still rampant in the city.
Mogadishu has an overall cost of living index which equates it with low cost of living locations. The overall cost of living index is comprised of the prices for defined quantities of the same goods and services across all 13 Basket Groups.
The latest cost of living rank for each of the 13 Basket Groups is now available.