earing a red five-pointed star in the center

Economy

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). Also,
renewed fighting between Ethiopia and Eritrea has disturbed normal
external channels of commerce. 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--$530 million (1998 est.)

GDP--real growth rate: 0.6% (1998 est.)

GDP--per capita: purchasing power parity?$1,200 (1998 est.)

GDP--composition by sector:
agriculture: 3%
industry: 20%
services: 77% (1996 est.)

Population below poverty line: NA%

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

Inflation rate (consumer prices): 3% (1997 est.)

Labor force: 282,000

Labor force--by occupation: agriculture 75%, industry 11%,
services 14% (1991 est.)

Unemployment rate: 40%-50% (1996 est.)

Budget:
revenues: $156 million
expenditures: $175 million, including capital expenditures of $NA
(1997 est.)

Industries: limited to a few small-scale enterprises, such as
dairy products and mineral-water bottling

Industrial production growth rate: 3% (1996 est.)

Electricity--production: 175 million kWh (1996)

Electricity--production by source:
fossil fuel: 100%
hydro: 0%
nuclear: 0%
other: 0% (1996)

Electricity--consumption: 175 million kWh (1996)

Electricity--exports: 0 kWh (1996)

Electricity--imports: 0 kWh (1996