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 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). 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 - $520 million (1997 est.)

GDP - real growth rate 0.5% (1997 est.)

GDP - per capita purchasing power parity - $1,200 (1997 est.)

GDP - composition by sector
agriculture: 3%
industry: 20%
services: 77% (1996 est.)

Inflation rate - consumer price index 3% (1997 est.)

Labor force
total: 282,000
by 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.)

Electricity - capacity 85,000 kW (1995)

Electricity - production 180 million kWh (1995)

Electricity - consumption per capita 427 kWh (1995)

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

Exports
total value: $39.6 million (f.o.b., 1996 est.)
commodities: hides and skins, coffee (in transit) (1995)
partners: Ethiopia 45%, Somalia, Yemen, Saudi Arabia (1996)

Imports
total value: $200.5 million (f.o.b., 1996 est.)
commodities: foods, beverages, transport equipment, chemicals, petroleum products (1995)
partners: France, Ethiopia, Italy, Saudi Arabia, Thailand (1996)

Debt - external $276 million (1996 est.)

Economic aid
recipient: ODA, $NA

Currency 1 Djiboutian franc (DF) = 100 centimes

Exchange rates Djiboutian francs (DF) per US$1 - 177.721 (fixed rate since 1973)

Fiscal year calendar year

NOTE: The information regarding Djibouti on this page is re-published from the 1998 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Djibouti Economy 1998 information contained here. All suggestions for corrections of any errors about Djibouti Economy 1998 should be addressed to the CIA.