Economy Djibouti
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.
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.)
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.)
Labor force:
282,000 (2000)