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Laboratoire de la finance africaine

Djibouti

Aperçu 2022
Annual current GDP growth (%) : 6.5
GDP (USD billions) : 3.932
Population (Thousands) : 1.016 
Economic performance and outlook

Djibouti has not faced as severe an outbreak of COVID–19 as some countries. After the first reported case, measures to curb the spread of COVID–19 were taken by the government, including a curfew, a lockdown, a broad range of social distancing, and a mass testing campaign. These measures yielded positive results that led to the lifting of the lockdown and opening up of the country. The government maintained minimum security measures such as social distancing, mask-wearing, and systematic testing at entry points into the country. Overall, its economy has suffered from the pandemic’s weakening of global demand, which caused a sharp slowdown in re-export activities from the Doraleh terminal—Djibouti’s main growth engine. Real GDP growth slowed to 1.4% in 2020 from 7.8% in 2019. Total revenues, excluding grants, fell from 19.4% of GDP in 2019 to 17.5% of GDP in 2020, which led to a widening of the budget deficit to 2.3% of GDP from 0.5% of GDP in 2019. The value added by the services sector, which usually generates nearly 70% of Djibouti’s growth, increased only 2% in 2020, compared with 8.2% in 2019. The COVID–19 crisis has also resulted in a sharp deceleration of investments, which increased by only 10.3% of GDP in 2020 after growing by 26.3% of GDP in 2019. Inflation remained stable at about 3.5% in 2020, despite steps by the central bank to foster growth —including an exceptional overdraft mechanism and temporary easing of bank capital requirements, which resulted in money supply growth of 9.39% from September 2019 to September 2020. A decline in foreign direct investment (FDI) and port revenues weakened the current account balance, which showed a deficit of 9.2% of GDP in 2020, compared with a surplus of 13% of GDP a year earlier. (Download detailed Analysis Source : Report African Economic Outlook 2021 ; AfDB)