Djibouti Economy - 2021

Economic overview

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.

Real GDP growth rate

6.7% (2017 est.)

6.5% (2016 est.)

6.5% (2015 est.)

Inflation rate (consumer prices)

0.7% (2017 est.)

2.7% (2016 est.)

Real GDP (purchasing power parity)

$5.388 billion (2019 est.)

$4.999 billion (2018 est.)

$4.612 billion (2017 est.)

note: data are in 2017 dollars

GDP (official exchange rate)

$3.323 billion (2019 est.)

Real GDP per capita

$5,535 (2019 est.)

$5,214 (2018 est.)

$4,885 (2017 est.)

note: data are in 2017 dollars

Gross national saving

25.6% of GDP (2018 est.)

25.6% of GDP (2017 est.)

19% of GDP (2015 est.)

GDP - composition, by sector of origin

agriculture: 2.4% (2017 est.)

industry: 17.3% (2017 est.)

services: 80.2% (2017 est.)

GDP - composition, by end use

household consumption: 56.5% (2017 est.)

government consumption: 29.2% (2017 est.)

investment in fixed capital: 41.8% (2017 est.)

investment in inventories: 0.3% (2017 est.)

exports of goods and services: 38.6% (2017 est.)

imports of goods and services: -66.4% (2017 est.)

Ease of Doing Business Index scores

Overall score: 60.5 (2020)

Starting a Business score: 84.3 (2020)

Trading score: 59.4 (2020)

Enforcement score: 48.4 (2020)

Agricultural products

vegetables, milk, beef, camel milk, lemons, limes, goat meat, mutton, beans, tomatoes

Industries

construction, agricultural processing, shipping

Industrial production growth rate

2.7% (2017 est.)

Labor force

294,600 (2012)

Labor force - by occupation

agriculture: NA

industry: NA

services: NA

Unemployment rate

40% (2017 est.)

60% (2014 est.)

Population below poverty line

21.1% (2017 est.)

Gini Index coefficient - distribution of family income

41.6 (2017 est.)

Household income or consumption by percentage share

lowest 10%: 2.4%

highest 10%: 30.9% (2002)

Budget

revenues: 717 million (2017 est.)

expenditures: 899.2 million (2017 est.)

Taxes and other revenues

35.3% (of GDP) (2017 est.)

Budget surplus (+) or deficit (-)

-9% (of GDP) (2017 est.)

Public debt

31.8% of GDP (2017 est.)

33.7% of GDP (2016 est.)

Fiscal year

calendar year

Current account balance

-$280 million (2017 est.)

-$178 million (2016 est.)

Exports

$139.9 million (2017 est.)

Exports - partners

Saudi Arabia 42%, India 15%, China 14%, Egypt 5%, South Korea 5% (2019)

Exports - commodities

various animals, chlorides, dried legumes, industrial fatty acids/oils, coffee, chickpeas (2019)

Imports

$726.4 million (2017 est.)

$705.2 million (2016 est.)

Imports - partners

China 43%, United Arab Emirates 15%, India 7%, Turkey 5% (2019)

Imports - commodities

refined petroleum, fertilizers, iron sheeting, cars, palm oil (2019)

Reserves of foreign exchange and gold

$547.7 million (31 December 2017 est.)

$398.5 million (31 December 2016 est.)

Debt - external

$1.954 billion (31 December 2017 est.)

$1.519 billion (31 December 2016 est.)

Exchange rates

Djiboutian francs (DJF) per US dollar -

177.7 (2017 est.)

177.72 (2016 est.)

177.72 (2015 est.)

177.72 (2014 est.)

177.72 (2013 est.)