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.)
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)
