Djibouti Economy 2007

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 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):
$1.878 billion (2006 est.)

GDP (official exchange rate):
$702 million (2005 est.)

GDP - real growth rate:
3.2% (2005 est.)

GDP - per capita (PPP):
$1,000 (2005 est.)

GDP - composition by sector:
agriculture: 17.9%
industry: 22.5%
services: 59.6% (2003 est.)

Labor force:
282,000 (2000)

Labor force - by occupation:
agriculture: NA%
industry: NA%
services: 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):
3% (2005 est.)

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

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

Industries:
construction, agricultural processing

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

Electricity - production:
200 million kWh (2005)

Electricity - consumption:
186 million kWh (2005)

Electricity - exports:
0 kWh (2005)

Electricity - imports:
0 kWh (2005)

Oil - production:
0 bbl/day (2004)

Oil - consumption:
11,900 bbl/day (2004 est.)

Oil - exports:
NA bbl/day

Oil - imports:
NA bbl/day

Oil - proved reserves:
0 bbl (1 January 2006)

Natural gas - production:
0 cu m (2005 est.)

Natural gas - consumption:
0 cu m (2005 est.)

Exports:
$250 million f.o.b. (2004 est.)

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

Exports - partners:
Somalia 66.2%, Ethiopia 21.4%, Yemen 3.4% (2006)

Imports:
$987 million f.o.b. (2004 est.)

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

Imports - partners:
Saudi Arabia 21.4%, India 17.9%, China 11%, Ethiopia 4.6% (2006)

Economic aid - recipient:
$78.6 million (2005)

Debt - external:
$394 million (2004 est.)

Currency (code):
Djiboutian franc (DJF)

Exchange rates:
Djiboutian francs per US dollar - 174.75 (2006), 177.72 (2005), 177.72 (2004), 177.72 (2003), 177.72 (2002)