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Djibouti
Djibouti is a country whose economy continues to expand at a steady pace. In 2024, the country recorded real GDP growth of 6.51%, reflecting strong economic momentum supported by port activities, logistics, and infrastructure investments. With a population of 1.17 million, Djibouti’s GDP reached 4.29 billion USD in 2024. Inflation remained moderate at 2.11%, indicating a relatively stable price environment that helps preserve household purchasing power. The Human Development Index, at 0.513, places Djibouti in the low development category, highlighting ongoing challenges in areas such as education, healthcare, and living standards despite gradual social progress. The employment rate for people aged 15 and over is 32.07%, a notably low figure that points to limited job opportunities, high unemployment, and structural constraints in the labor market.
GDP nominal
USD 4.29 billion (2024)
Inflation
2.1% (2024)
Real GDP growth
6.5% (2024)
Employment as a % of population 15+
32.07% (2023)
Population
1.17 million (2024)
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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Mineral Resources
Djibouti does not possess large-scale reserves of oil, gas or minerals currently exploited, but the country holds substantial renewable energy potential, particularly geothermal fields in the Lake Assal region as well as strong wind and solar resources. Although extractive activities are minimal, Djibouti occupies a strategic position for energy transit, notably through the Ethiopia-Djibouti gas pipeline and planned LNG terminal infrastructure. The government aims to develop domestic…
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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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Industry
Industrial development in Djibouti remains limited, with manufacturing concentrated in agro processing, beverages, construction materials, textiles and light assembly. High production costs, limited electricity supply, small domestic markets and financial constraints restrict industrial expansion. The government promotes industrialization through Special Economic Zones (SEZs), investment incentives, business regulation reforms and public-private partnerships. The digital economy is growing…
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