Economy - overview 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 50% continues to be a major problem. Inflation is not a concern, however, because of the fixed tie of the franc to the US dollar. 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). 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. Another factor limiting growth is the negative impact on port activity now that Ethiopia has more trade route options.

GDP purchasing power parity - $586 million (2001 est.)

GDP - real growth rate 0% (2001 est.)

GDP - per capita purchasing power parity - $1,400 (2001 est.)

GDP - composition by sector
agriculture: 3%
industry: 10%
services: 87% (2001 est.)

Population below poverty line 50% (2001 est.)

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

Inflation rate (consumer prices) 2% (2001 est.)

Labor force 282,000

Labor force - by occupation NA%

Unemployment rate 50% (2000 est.)

Budget
revenues: $135 million
expenditures: $182 million, including capital expenditures of $NA (1999 est.)

Industries construction, agricultural processing

Industrial production growth rate 3% (1996 est.)

Electricity - production 180 million kWh (2000)

Electricity - production by source
fossil fuel: 100%
hydro: 0%
other: 0% (2000)
nuclear: 0%

Electricity - consumption 167.4 million kWh (2000)

Electricity - exports 0 kWh (2000)

Electricity - imports 0 kWh (2000)

Agriculture - products fruits, vegetables; goats, sheep, camels

Exports $260 million (f.o.b., 1999 est.)

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

Exports - partners Somalia 53%, Yemen 23%, Ethiopia 5% (1998)

Imports $440 million (f.o.b., 1999 est.)

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

Imports - partners France 13%, Ethiopia 12%, Italy 9%, Saudi Arabia 6%, UK 6% (1998)

Debt - external $366 million (2002 est.)

Economic aid - recipient $36 million (2001)

Currency Djiboutian franc (DJF)

Currency code DJF

Exchange rates Djiboutian francs per US dollar - 177.721 (fixed rate since 1973)

Fiscal year calendar year

NOTE: The information regarding Djibouti on this page is re-published from the 2002 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Djibouti Economy 2002 information contained here. All suggestions for corrections of any errors about Djibouti Economy 2002 should be addressed to the CIA.