Since the collapse of the state, Somalia has transformed from what Mohamed Siad Barre referred to as "scientific socialism" to a free market economy. Due to the lack of government oversight or statistics, and the recent war, it is difficult to calculate the size or growth of the economy. For 1994, the CIA estimated GDP at $3.3 billion[5] In 2001, it was estimated to be $4.1 billion.[6] In 2005, the CIA estimated GDP to be $4.809 billion.[7] Real growth in 2005 was projected at 2.4%, and 2.8% in 2008.[1]
The absence of central government authority, as well as profiteering from counterfeiting, rapidly debased Somalia's currency in 2001–2002. By the spring of 2002, the free market rates, such as used in the Bakaara Market, pegged the value of the Somali shilling (SoSh) emitted by the TNG to over 30,000 shillings to the U.S. dollar. In 2003, that rate had leveled off to 20,000 shillings to the dollar.[8] In April 2006, the value had recovered even further to 13,400, which is still below the rate of 10,100 SoSh to the dollar in January 2000.[9] This rate is far worse than the official currency exchange rate, which in January 2000, stood at 2,555.42 SoSh to the dollar[10], and in January 2007, stood at 1,288.26 to the dollar.[11]