Djibouti Economy - 2005

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 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. 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 at least 50% 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% 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 - $619 million (2002 est.)

GDP - real growth rate:
3.5% (2002 est.)

GDP - per capita:
purchasing power parity - $1,300 (2002 est.)

GDP - composition by sector:
agriculture: 3.5%
industry: 15.8%
services: 80.7% (2001 est.)

Labor force:
282,000 (2000)

Labor force - by occupation:
NA

Unemployment rate:
50% (2004 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% (2002 est.)

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

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

Industries:
construction, agricultural processing, salt

Industrial production growth rate:
3% (1996 est.)

Electricity - production:
180 million kWh (2002)

Electricity - consumption:
167.4 million kWh (2002)

Electricity - exports:
0 kWh (2002)

Electricity - imports:
0 kWh (2002)

Oil - production:
0 bbl/day (2001 est.)

Oil - consumption:
11,300 bbl/day (2001 est.)

Oil - exports:
NA

Oil - imports:
NA

Exports:
$155 million f.o.b. (2002 est.)

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

Exports - partners:
Somalia 63.9%, Yemen 22.6%, Ethiopia 5% (2004)

Imports:
$665 million f.o.b. (2002 est.)

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

Imports - partners:
Saudi Arabia 21%, Ethiopia 9.9%, India 8.2%, China 7.8%, US 6.1%, France 6% (2004)

Debt - external:
$366 million (2002 est.)

Economic aid - recipient:
$36 million (2001)

Currency (code):
Djiboutian franc (DJF)

Exchange rates:
Djiboutian francs per US dollar - 177.72 (2004), 177.72 (2003), 177.72 (2002), 177.72 (2001), 177.72 (2000)