Djibouti: Economy#
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 re-exports 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 help support its balance of payments and to finance development projects. An official unemployment rate of nearly 50% - with youth unemployment near 80% - continues to be a major problem. Inflation declined to 3% in 2014 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 – has begun to increase and modernize its port capacity.
Economic Facts#
| GDP (purchasing power parity) | $3.345 billion (2016 est.) $3.141 billion (2015 est.) $2.949 billion (2014 est.) note: data are in 2016 dollars |
|---|---|
| GDP (official exchange rate) | $1.894 billion (2015 est.) |
| GDP - real growth rate | 6.5% (2016 est.) 6.5% (2015 est.) 6% (2014 est.) |
| GDP - per capita (PPP) | $3,400 (2016 est.) $3,300 (2015 est.) $3,100 (2014 est.) note: data are in 2016 dollars |
| Gross national saving | 10.7% of GDP (2016 est.) 28.9% of GDP (2015 est.) 18.5% of GDP (2014 est.) |
| GDP - composition, by end use | household consumption: 60.5% government consumption: 32% investment in fixed capital: 42.2% investment in inventories: 0.4% exports of goods and services: 34.8% imports of goods and services: -69.9% (2016 est.) |
| GDP - composition, by sector of origin | agriculture: 2.9% industry: 20.8% services: 76.3% (2016 est.) |
| Agriculture - products | fruits, vegetables; goats, sheep, camels, animal hides |
| Industries | construction, agricultural processing, shipping |
| Industrial production growth rate | 4.7% (2016 est.) |
| Labor force | 294,600 (2012) |
| Labor force - by occupation | agriculture: NA% industry: NA% services: NA% |
| Unemployment rate | 60% (2014 est.) 59% (2007 est.) |
| Population below poverty line | 23% note: percent of population below $1.25 per day at purchasing power parity (2015 est.) |
| Household income or consumption by percentage share | lowest 10%: 2.4% highest 10%: 30.9% (2002) |
| Distribution of family income - Gini index | 40.9 (2002) |
| Budget | revenues: $685.7 million expenditures: $885.9 million (2016 est.) |
| Taxes and other revenues | 36.2% of GDP (2016 est.) |
| Budget surplus (+) or deficit (-) | -10.6% of GDP (2016 est.) |
| Public debt | 38.6% of GDP (2012 est.) |
| Fiscal year | calendar year |
| Inflation rate (consumer prices) | 3% (2016 est.) 2.7% (2015 est.) |
| Commercial bank prime lending rate | 11.7% (31 December 2016 est.) 11.62% (31 December 2015 est.) |
| Stock of narrow money | $1.207 billion (31 December 2016 est.) $1.182 billion (31 December 2015 est.) |
| Stock of broad money | $1.71 billion (31 December 2016 est.) $1.572 billion (31 December 2015 est.) |
| Stock of domestic credit | $652 million (31 December 2016 est.) $597.6 million (31 December 2015 est.) |
| Current account balance | -$325 million (2016 est.) -$530 million (2015 est.) |
| Exports | $146.1 million (2016 est.) $141.9 million (2015 est.) |
| Exports - commodities | reexports, hides and skins, coffee (in transit), scrap metal |
| Exports - partners | Somalia 79.8%, US 5.4%, Yemen 4.6%, UAE 4% (2015) |
| Imports | $992 million (2016 est.) $1.038 billion (2015 est.) |
| Imports - commodities | foods, beverages, transport equipment, chemicals, petroleum products, clothing |
| Imports - partners | China 42.1%, Saudi Arabia 14.3%, Indonesia 5.9%, India 4.4% (2015) |
| Debt - external | $1.339 billion (31 December 2016 est.) $1.09 billion (31 December 2015 est.) |
| Stock of direct foreign investment - at home | $1.767 billion (31 December 2016 est.) $1.368 billion (31 December 2015 est.) |
| Exchange rates | Djiboutian francs (DJF) per US dollar - 177.7 (2016 est.) 177.72 (2015 est.) 177.72 (2014 est.) 177.72 (2013 est.) 177.72 (2012 est.) |