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Djibouti: Economic Outline

Economic Indicators

The country's macro-economic stability has significantly improved in the last recent years. The growth of its GDP has progressed regularly and despite the crisis, its growth trend remained at 4% in 2011. This growth is drawn from trade and investments, especially in the services sector, mainly from the ports but also from the airport and financial sectors. The tertiary sector represents more than three-fourths of the country's GDP. 

Djibouti and the IMF signed in 2008 a three-year PRGF agreement (The Poverty Reduction and Growth Facility). This economic and structural adjustment program was based on the National Initiative for Social Development (INDS), launched by the government in January 2007, and it is considered as the reference framework for a new social-economic development program. The PRGF has been replaced by the Extended Credit Facility, its objective is to promote a general growth and to reduce poverty. This program entails budget improvement measures and the modernization of the country's banking control system among other issues.

Djibouti remains a poor country, with an unemployment rate of 50%, vast inequalities and a low level of education. In addition, the population suffers with the weight of high food prices since the international financial crisis.

In the political plan, the president Ismail Omar Guelleh, who has been in power since 1997 was re-elected in 2011 for a term of 5 more years.

 

Learn more about Market Analyses about Djibouti on Globaltrade.net, the Directory for International Trade Service Providers.

 

Indicator of Economic Freedom

Score:

54.5/100

Position:

Mostly unfree

World Rank:

120/179

Regional Rank:

24/45

Distribution of Economic freedom in the world
Source: 2011 Index of Economic freedom, Heritage Foundation

Note: The Economic freedom index measure ten components of economic freedom, grouped into four broad categories or pillars of economic freedom: Rule of Law (property rights, freedom from corruption); Limited Government (fiscal freedom, government spending); Regulatory Efficiency (business freedom, labor freedom, monetary freedom); and Open Markets (trade freedom, investment freedom, financial freedom). Each of the freedoms within these four broad categories is individually scored on a scale of 0 to 100. A country’s overall economic freedom score is a simple average of its scores on the 10 individual freedoms.

 

Country Risk

See the Country Risk Analysis Provided By Ducroire.

 

Indicator of Political Freedom

Ranking:

Partly Free

Political Freedom:

5/7

Civil Liberties:

5/7

Map of freedom 2010
Source: Freedom House

Note: The Indicator of Political Freedom provides an annual evaluation of the state of freedom in a country as experienced by individuals. The survey measures freedom according to two broad categories: political rights and civil liberties. The ratings process is based on a checklist of 10 political rights questions (on Electoral Process, Political Pluralism and Participation, Functioning of Government) and 15 civil liberties questions (on Freedom of Expression, Belief, Associational and Organizational Rights, Rule of Law, Personal Autonomy and Individual Rights). Scores are awarded to each of these questions on a scale of 0 to 4, where a score of 0 represents the smallest degree and 4 the greatest degree of rights or liberties present. The total score awarded to the political rights and civil liberties checklist determines the political rights and civil liberties rating. Each rating of 1 through 7, with 1 representing the highest and 7 the lowest level of freedom, corresponds to a range of total scores.

 

Indicator of Freedom of the Press

World Rank:

160/179

Evolution:

50 places down compared to 2010

Source: Worldwide Press Freedom Index 2011, Reporters Without Borders

Note: The world rankings, published annually, measures the violations of press freedom worldwide. It reflects the degree of freedom enjoyed by journalists, the media and digital citizens of each country and the means used by states to respect and uphold this freedom. Finally, a note and a position is assigned to each country. To compile this index, Reporters Without Borders (RWB) prepared a questionnaire sent to partner organizations,150 RWB correspondents, journalists, researchers, jurists and activists of human rights, including the main criteria - 44 in total - to assess the situation of press freedom in a given country. It includes every kind of direct attacks against journalists and digital citizens (murders, imprisonment, assault, threats, etc.) or against the media (censorship, confiscation, searches and harassment etc.).

Sources of General Economic Information

Main Online Newspapers and Portals

Djibouti information Agency
Les Afrique, Information on Djibouti
Jeune Afrique, Information on Djibouti
allAfrica.com, Djibouti News
Djibouti News Sites
afrol News, Djibouti
Djibouti Newspapers

Useful Resources

Ministry of Economy, Finance, Planning and Privatization
Central Bank

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Last Updates: May 2012