Djibouti

ECONOMICS

Budget: Income ... $156 million
Expenditure ...$175 million

Main Crops:
Fruits, vegetables; goats, sheep, camels

Natural Resources:
geothermal areas

Major Industries:
Limited to a few small-scale enterprises, such as dairy products and mineral-water bottling

Djibouti's economy is based on service activities connected with the country's strategic location as a deepwater port on the Red Sea. Three-fourths of Djibouti's inhabitants live in the capital city; the remainder are mostly nomadic herders. Scant rainfall and less than 4% arable land limits crop production to small quantities of fruits and vegetables, and most food must be imported.

Djibouti provides services as both a transit port for the region and an international transshipment and refueling center. Imports, exports, and reexports represent 70% of port activity at Djibouti's container terminal. Reexports consist primarily of coffee from landlocked neighbor Ethiopia. Djibouti has few natural resources and little industry. The nation is, therefore, heavily dependent on foreign assistance to support its balance of payments and to finance development projects. An official unemployment rate of nearly 40% - with youth unemployment near 80% - continues to be a major problem. Inflation was a modest 3% in 2014-2017, due to low international food prices and a decline in electricity tariffs.

Djibouti’s reliance on diesel-generated electricity and imported food and water leave average consumers vulnerable to global price shocks, though in mid-2015 Djibouti passed new legislation to liberalize the energy sector. The government has emphasized infrastructure development for transportation and energy and Djibouti – with the help of foreign partners, particularly China – has begun to increase and modernize its port capacity. In 2017, Djibouti opened two of the largest projects in its history, the Doraleh Port and Djibouti-Addis Ababa Railway, funded by China as part of the "Belt and Road Initiative," which will increase the country’s ability to capitalize on its strategic location.

 

 

1990 2000 2010 2020
GNI, Atlas method (current US$) (billions) .. .. .. 3.28
GNI per capita, Atlas method (current US$) .. .. .. 3,320
GNI, PPP (current international $) (billions) .. .. 3.72 5.46
GNI per capita, PPP (current international $) .. .. 4,210 5,610
People
Income share held by lowest 20% .. 6 4.3 5.4
GDP (current US$) (billions) 0.45 0.55 1.13 3.38
GDP growth (annual %) .. .. .. 0.5
Inflation, GDP deflator (annual %) .. .. .. 1.3
Agriculture, forestry, and fishing, value added (% of GDP) .. .. 1 1
Industry (including construction), value added (% of GDP) .. .. 11 16
Exports of goods and services (% of GDP) .. .. 157 153
Imports of goods and services (% of GDP) .. .. 191 140
Gross capital formation (% of GDP) .. .. 57 6
Revenue, excluding grants (% of GDP) .. .. .. ..
Net lending (+) / net borrowing (-) (% of GDP) .. .. .. ..
States and markets
Time required to start a business (days) .. .. 37 14
Domestic credit provided by financial sector (% of GDP) .. .. .. ..
Tax revenue (% of GDP) .. .. .. ..
Military expenditure (% of GDP) 6.7 5.1 3.7 ..
Mobile cellular subscriptions (per 100 people) 0 0 19.7 43.9
Individuals using the Internet (% of population) 0 0.2 6.5 59
High-technology exports (% of manufactured exports) .. .. 1 ..
Statistical Capacity Score (Overall Average) (scale 0 - 100) .. .. 44 58
Global links
Merchandise trade (% of GDP) 53 43 41 182
Net barter terms of trade index (2000 = 100) .. 100 101 104
External debt stocks, total (DOD, current US$) (millions) 155 298 769 2,679
Total debt service (% of exports of goods, services and primary income) 4.7 6.9 7.9 1.7
Net migration (thousands) -45 -9 6 5
Personal remittances, received (current US$) (millions) 13 12 33 64
Foreign direct investment, net inflows (BoP, current US$) (millions) 0 3 37 175
Net official development assistance received (current US$) (millions) 207 72.2 132 272.5