Djibouti Economy Profile 2009

Economy - overview

The economy is based on service activities connected with the country's strategic location and status as a free trade zone in the Horn of Africa. Two-thirds of Djibouti's inhabitants live in the capital city; the remainder are mostly nomadic herders. Scanty rainfall limits crop production to 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 and exports from landlocked neighbor Ethiopia represent 85% of port activity at Djibouti's container terminal. 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 unemployment rate of nearly 60% in urban areas continues to be a major problem. While inflation is not a concern, due to the fixed tie of the Djiboutian franc to the US dollar, the artificially high value of the Djiboutian franc adversely affects Djibouti's balance of payments. Per capita consumption dropped an estimated 35% between 1999 and 2006 because of recession, civil war, and a high population growth rate (including immigrants and refugees). Faced with a multitude of economic difficulties, the government has fallen in arrears on long-term external debt and has been struggling to meet the stipulations of foreign aid donors.

GDP (purchasing power parity)

$1.885 billion (2008 est.)
$1.782 billion (2007 est.)
$1.692 billion (2006 est.)
note: data are in 2008 US dollars

GDP (official exchange rate)

$982 million (2008 est.)

GDP - real growth rate

5.8% (2008 est.)
5.3% (2007 est.)
4.8% (2006 est.)

GDP - per capita (PPP)

$3,700 (2008 est.)
$3,600 (2007 est.)
$3,500 (2006 est.)
note: data are in 2008 US dollars

GDP - composition by sector

agriculture: 3.2%
industry: 14.9%
services: 81.9% (2006 est.)

Population below poverty line

42% (2007 est.)

Labor force

351,700 (2007)

Labor force - by occupation

agriculture: NA%
industry: NA%
services: NA%

Unemployment rate

59% (2007 est.)
note: data are for urban areas, 83% in rural areas

Household income or consumption by percentage share

lowest 10%: NA%
highest 10%: NA%

Budget

revenues: $135 million
expenditures: $182 million (1999 est.)

Inflation rate (consumer prices)

5% (2007 est.)

Commercial bank prime lending rate

NA

Stock of money

$462.7 million (31 December 2008)
$380 million (31 December 2007)

Stock of quasi money

$338 million (31 December 2008)
$284.1 million (31 December 2007)

Stock of domestic credit

$269.9 million (31 December 2008)
$224.7 million (31 December 2007)

Industries

construction, agricultural processing

Electricity - production

250 million kWh (2006 est.)

Electricity - production by source

fossil fuel: 100%
hydro: 0%
nuclear: 0%
other: 0% (2001)

Electricity - consumption

232.5 million kWh (2006 est.)

Electricity - exports

0 kWh (2007 est.)

Electricity - imports

0 kWh (2007 est.)

Oil - production

0 bbl/day (2007 est.)

Oil - consumption

12,170 bbl/day (2006 est.)

Oil - imports

11,810 bbl/day (2005)

Oil - exports

19.18 bbl/day (2005)

Oil - proved reserves

0 bbl (1 January 2006 est.)

Natural gas - production

0 cu m (2007 est.)

Natural gas - consumption

0 cu m (2007 est.)

Natural gas - exports

0 cu m (2007 est.)

Natural gas - imports

0 cu m (2007 est.)

Natural gas - proved reserves

0 cu m (1 January 2006 est.)

Current Account Balance

$-212 million (2007 est.)

Agriculture - products

fruits, vegetables; goats, sheep, camels, animal hides

Exports

$340 million (2006)

Exports - commodities

reexports, hides and skins, coffee (in transit)

Exports - partners

Somalia 64.6%, Ethiopia 20.9%, UAE 3.3% (2008)

Imports

$1.555 billion (2006)

Imports - commodities

foods, beverages, transport equipment, chemicals, petroleum products

Imports - partners

Saudi Arabia 22.1%, India 16.6%, China 9.1%, US 6.5%, Malaysia 4.5%, Ethiopia 4.3% (2008)

Debt - external

$428 million (2006)

Economic aid - recipient

$78.6 million (2005)

Currency (code)

Djiboutian franc (DJF)

Currency (code)

DJF

Exchange rates

Djiboutian francs (DJF) per US dollar - 177.71 (2007), 174.75 (2006), 177.72 (2005), 177.72 (2004), 177.72 (2003)

Fiscal year

calendar year