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Djibouti
Djibouti is a country whose economy continues to expand at a steady pace. In 2025, the country recorded real GDP growth of 6.00%, reflecting strong economic momentum supported by port activities, logistics services, and ongoing infrastructure investments. With a population of 1.18 million, Djibouti’s nominal GDP reached USD 4.38 billion in 2025. Inflation stood at -0.32%, indicating a slight decline in the general price level and a stable macroeconomic environment. The Human Development Index (HDI), at 0.513, places Djibouti in the low human development category, highlighting persistent challenges in education, healthcare, and living standards despite gradual social progress. The employment rate for people aged 15 and over was 31.74% in 2025, a notably low figure that points to limited job opportunities, high levels of unemployment, and structural constraints in the labor market. While the country continues to benefit from its strategic geographic position and role as a regional logistics hub, expanding employment opportunities and strengthening human development outcomes remain essential for achieving more inclusive and sustainable growth.
GDP nominal
USD 4.38 billion (2025)
Inflation
-0.32% (2025)
Real GDP growth
6.00% (2025)
Employment as a % of population 15+
31.74% (2025)
Population
1.18 million (2025)
Human development index
0.513 (2023)
Investment indicators
Foreign Direct Investment (FDI) inflows as a % of GDP
General government investment (gross fixed capital formation) as a % of GDP
Private investment (gross fixed capital formation) as a % of GDP
Investment landscape
Key sectors
Agriculture
Agriculture in Djibouti is highly constrained due to its arid climate, very limited rainfall, scarce arable land (less than 1%), and heavy dependence on imported food. Production is primarily concentrated in small irrigated plots, oasis farming and peri-urban gardens, with limited use of modern technologies. Livestock, especially goats, sheep and camels, dominates rural livelihoods and holds significant potential, but productivity remains low because of water scarcity, poor grazing…
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Energy
Djibouti seeks to transition toward 100% renewable energy by leveraging its exceptional geothermal, solar and wind potential. Hydropower capacity is negligible, but geothermal fields in the Rift Valley and strong solar radiation provide major opportunities. Despite this potential, installed capacity remains limited, and electricity access outside urban centers is low. The national grid relies heavily on imported Ethiopian power, leading to vulnerabilities when cross-border supply is…
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Transport
Djibouti’s strategic position at the entrance of the Red Sea makes transport infrastructure central to its economy. The country hosts world-class port facilities, including container, multipurpose, bulk and livestock terminals, which serve as the primary maritime gateway for Ethiopia’s trade. The Djibouti-Addis Ababa electrified railway strengthens regional connectivity and supports multimodal transport. Despite strong assets, challenges remain in road quality, limited storage, high…
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