Economy
Economyoverview: The economy is based on service activities connected with the country's strategic location and status as a free trade zone in northeast Africa. Two-thirds of the inhabitants live in the capital city, the remainder being 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. It 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 40% to 50% continues to be a major problem. Per capita consumption dropped an estimated 35% over the last seven years because of recession, civil war, and a high population growth rate (including immigrants and refugees). Also, renewed fighting between Ethiopia and Eritrea has disturbed normal external channels of commerce. 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$530 million (1998 est.)
GDPreal growth rate: 0.6% (1998 est.)
GDPper capita: purchasing power parity$1,200 (1998 est.)
GDPcomposition by sector:
agriculture: 3%
industry: 20%
services: 77% (1996 est.)
Population below poverty line: NA%
Household income or consumption
by percentage share:
lowest 10%: NA%
highest 10%: NA%
Inflation rate (consumer prices): 3% (1997 est.)
Labor force: 282,000
Labor forceby occupation: agriculture 75%, industry 11%, services 14% (1991 est.)
Unemployment rate: 40%-50% (1996 est.)
Budget:
revenues: $156 million
expenditures: $175 million, including capital expenditures of
$NA (1997 est.)
Industries: limited to a few small-scale enterprises, such as dairy products and mineral-water bottling
Industrial production growth rate: 3% (1996 est.)
Electricityproduction: 175 million kWh (1996)
Electricityproduction by
source:
fossil fuel: 100%
hydro: 0%
nuclear: 0%
other: 0% (1996)
Electricityconsumption: 175 million kWh (1996)
Electricityexports: 0 kWh (1996)
Electricityimports: 0 kWh (1996)
Agricultureproducts: fruits, vegetables; goats, sheep, camels
Exports: $39.6 million (f.o.b., 1996 est.)
Exportscommodities: hides and skins, coffee (in transit) (1995)
Exportspartners: Ethiopia 45%, Somalia, Yemen, Saudi Arabia (1996)
Imports: $200.5 million (f.o.b., 1996 est.)
Importscommodities: foods, beverages, transport equipment, chemicals, petroleum products (1995)
Importspartners: France, Ethiopia, Italy, Saudi Arabia, Thailand (1996)
Debtexternal: $276 million (1996 est.)
Economic aidrecipient: $106.3 million (1995)
Currency: 1 Djiboutian franc (DF) = 100 centimes
Exchange rates: Djiboutian francs (DF) per US$1177.721 (fixed rate since 1973)
Fiscal year: calendar year