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The Economy of Djibouti

Djiboutian Economy

Djibouti's map

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% 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:

GDP - real growth rate: 6% (2008 est.) 5.3% (2007 est.) 4.8% (2006 est.)

GDP - per capita:

GDP - composition by sector: agriculture: 3.2% industry: 14.9% services: 81.9% (2006 est.)

Population below poverty line:

Household income or consumption by percentage share: lowest 10%: NA% highest 10%: NA%

Distribution of family income - Gini index:

Inflation rate (consumer prices):

Labor force: 282,000 (2000)

Labor force - by occupation: agriculture: NA% industry: NA% services: NA%

Unemployment rate: 59% in urban areas, 83% in rural areas (2007 est.)

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

Industries: construction, agricultural processing

Industrial production growth rate:

Electricity - production: 250 million kWh (2006 est.)

Electricity - production by source:

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 - exports: 19.18 bbl/day (2005)

Oil - imports: 11,810 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.)

Agriculture - products: fruits, vegetables; goats, sheep, camels, animal hides

Exports: $340 million f.o.b. (2006)

Exports - commodities: reexports, hides and skins, coffee (in transit)

Exports - partners: Somalia 66.4%, Ethiopia 21.5%, Yemen 3.4% (2007)

Imports: $1.555 billion f.o.b. (2006)

Imports - commodities: foods, beverages, transport equipment, chemicals, petroleum products

Imports - partners: Saudi Arabia 21%, India 18.1%, China 9.4%, Ethiopia 4.7%, Malaysia 4.6%, Japan 4.2% (2007)

Debt - external: $428 million (2006)

Economic aid - recipient:

Currency:

Currency code:

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: