Economy of Djibouti

Economy of Djibouti

A view of Djibouti's central district
Currency	Djiboutian franc (DJF)
Fiscal year	Calendar year
Trade organisations	AL, AU, CEN-SAD, IGAD
Statistics
GDP	$3.725 billion (nominal, 2022)[1] $6.619 billion (PPP, 2022)[1]
GDP growth	8.4% (2018) 7.5% (2019e) 1.3% (2020f) 9.2% (2021f)[2]
GDP per capita	$3.666 (nominal, 2022)[1] $6.619 (PPP, 2022)[1]
GDP by sector	Agriculture: 2.8% Industry: 21.0% Services: 76.1% (2017 est.)
Inflation (CPI)	0.148% (2018)[1]
Population below poverty line	23%
Human Development Index	0.509 low (2021)[3] (171st) N/A IHDI (2021)[4]
Labour force	294,600 (2012 est.)
Labour force by occupation	Agriculture: 10% Industry: 21.2% Tertiary sector of the economy
Unemployment	40% (2017 est.)
Main industries	Dairy, Fishing, Salt, Construction, Mining
External
Exports	$155.5 million (2017 est.)
Export goods	Reexports, Hides and skins, Coffee, Scrap metal
Main export partners	Ethiopia 38.8%  Somalia 17.1%  Qatar 9.1%  Brazil 8.9%  Yemen 4.9%  United States 4.6% (2017 est.)[5]
Imports	$1.172 billion (2017 est.)
Import goods	Machinery and Equipment, Foodstuffs, Beverages, Chemicals, Petroleum products, Consumer Goods
Main import partners	China 42%  Saudi Arabia 14%  India 4%  Indonesia 6%  Oman 3%[6]
Public finances
Government debt	85% (2017 est.)
Revenues	$615 million
Expenses	$860 million
All values, unless otherwise stated, are in US dollars.

The economy of Djibouti is derived in large part from its strategic location on the Red Sea. Djibouti is mostly barren, with little development in the agricultural and industrial sectors. The country has a harsh climate, a largely unskilled labour force, and limited natural resources. The country's most important economic asset is its strategic location, connecting the Red Sea and the Gulf of Aden. As such, Djibouti's economy is commanded by the services sector, providing services as both a transit port for the region and as an international transshipment and refueling centre.

From 1991 to 1994, Djibouti experienced a civil war which had devastating effects on the economy. Since then, the country has benefited from political stability. In recent years, Djibouti has seen significant improvement in macroeconomic stability, with its annual gross domestic product improving at an average of over 3 percent since 2003. This comes after a decade of negative or low growth and is attributed to fiscal adjustment aimed at improving public financing, reforms in port management and foreign investment.

Despite the recent modest and stable growth, Djibouti is faced with many economic challenges, particularly job creation and poverty reduction. With an average annual population growth rate of 2.5 percent, the economy cannot significantly benefit national income per capita growth. Unemployment is extremely high, with some estimates placing it at almost 60 percent, and is a major contributor to widespread poverty. In recent years, the country's dependence on Chinese investment and debt has also come under scrutiny.^[7]

According to a 2020 report by the World bank, Djibouti was 112th among 190 economies when it comes to the ease of doing business.^[8]