Country profile Djibouti 2016

Abstract

Djibouti, a country in the Horn of Africa, is home to 939,300 people (DISED, 2015). The economy is heavily reliant on and benefits from its geostrategic location in East Africa, at the entrance to the Red Sea and the Gulf of Aden on the Indian Ocean coast. This location presents opportunities and challenges for economic growth and development. Clearly, the location of Djibouti has contributed to its economic growth. Exploitation of this natural endowment has enabled the country to embark on massive infrastructure to boost economic growth. Compared with other countries in the region, Djibouti has realized a steady growth, rising from 4.5 per cent in 2011 to 6.5 per cent in 2015. This has been fueled largely by the expansion in ports services, which have resulted in a concomitant steady revenue. Although it outperforms the continental average, the country’s GDP growth rate fails to match the subregional standard for 2014 and 2015. Furthermore, the Government projected a growth of 7.2 per cent in 2016 on the basis of massive public and private investments.