Diplomatic representation from the US: chief of mission: Ambassador
Donald YAMAMOTO embassy: Plateau du Serpent, Boulevard Marechal Joffre,
Djibouti mailing address: B. P. 185, Djibouti telephone: [253] 35 39 95
FAX: [253] 35 39 40

Flag description: two equal horizontal bands of light blue (top) and
light green with a white isosceles triangle based on the hoist side
bearing a red five-pointed star in the center

Economy Djibouti

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 50%
continues to be a major problem. Inflation is not a concern, however,
because of the fixed tie of the franc to the US dollar. 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. Another
factor limiting growth is the negative impact on port activity now that
Ethiopia has more trade route options.

GDP: purchasing power parity - $586 million (2001 est.)

GDP - real growth rate: 0% (2001 est.)

GDP - per capita: purchasing power parity - $1,400 (2001 est.)

GDP - composition by sector: agriculture: 3% industry: 10% services: 87%
(2001 est.)

Population below poverty line: 50% (2001 est.)

Household income or consumption by percentage share: lowest 10%: NA%
highest 10%: NA%

Inflation rate (consumer prices): 2% (2001 est.)

Labor force: 282,000

Labor force - by occupation: NA%

Unemployment rate: 50% (2000 est.)

Budget: revenues: $135 million expenditures: $182 million, including
capital expenditures of $NA (1999 est.)

Industries: construction, agricultural proces