Djibouti profile

Demography and Health

Djibouti’s population sits at about 1.17 million in 2024, reflecting a small but urbanizing country whose social services face significant strain. The net migration rate is -11.0 per 1,000 people in 2024, indicating more people leaving than entering, which can influence labor markets and dependency dynamics. The crude birth rate is 20.8 per 1,000 (2023), while the crude death rate is 7.46 per 1,000 (2023), suggesting moderate natural population growth but with health challenges that impact mortality patterns. Life expectancy at birth is 66.0 years (2023), a relatively low figure that signals gaps in health outcomes and healthcare access. Under-5 mortality is 50.4 per 1,000 live births (2023), highlighting substantial child health challenges requiring targeted interventions in maternal and child health, nutrition, and immunization. Nutritional vulnerability remains evident, with 12.9% of the population undernourished (2022). The country spends 2.5% of GDP on current health expenditure (2022), and domestic general government health expenditure per capita, PPP is 63.6 international US$ (2022), indicating limited health financing capacity and room for improving service delivery efficiency. Internet usage is 65.0% of the population (2023), reflecting a significant digital presence that can support health information, telemedicine, and remote health education. Suicide mortality stands at 7.96 per 100,000 (2021), a statistic that, while not among the highest globally, underscores mental health as an area requiring attention in health policy planning. Overall, these indicators point to a governance and resource challenge in health outcomes, with growing urbanization and digital connectivity offering pathways to improve population health outcomes if paired with stronger investment in health systems and nutrition.

Economy

Djibouti’s GDP per capita is 3,496 current US$ in 2024, with a PPP-adjusted GDP per capita of 7,776 international US$, suggesting that local prices enable a higher standard of living when adjusted for purchasing power, despite a modest nominal income level. The economy exhibits a striking export orientation: exports of goods and services equal 161.0% of GDP (2024), while imports total 148.0% of GDP (2024). This indicates a heavy reliance on external trade and services—likely driven by Djibouti’s strategic port activities and re-exports—rather than broad-based domestic production. Inflation remains modest at 2.08% (2024), supporting price stability for households and businesses. The current account balance stands at a robust 14.9% of GDP (2024), signaling strong external receipts relative to the size of the economy, a pattern compatible with port-driven services and foreign exchange earnings. Foreign direct investment, net inflows, are 1.66% of GDP (2024), reflecting a moderate level of capital inflows that could rise with improved governance and investment climate. Renewable energy represents 26.9% of total final energy consumption (2022), illustrating diversification away from fossil fuels and potential for future energy transition. High-technology exports are relatively small at 86.7 million US$ (2023), indicating limited domestic high-tech manufacturing; resident patent activity is minimal with 3 applications in 2021, pointing to a nascent or constrained local innovation ecosystem. Taken together, Djibouti’s economy appears anchored in strategic services and logistics, with important opportunities to deepen value addition, broaden industrial capacity, and attract further investment while managing external exposure from its trade-centric model.

Trade and Investment

Djibouti’s trade profile is distinctive: exports of goods and services exceed GDP by a wide margin (161.0% of GDP in 2024), while imports are also very high (148.0% of GDP in 2024). This pattern reflects a logistics- and port-led economy where significant trade turnover is captured through gateway services, re-exports, and transit activity rather than traditional domestic production. The country’s logistics environment yields a Logistics Performance Index score of 2.3 (2022) for quality of trade- and transport-related infrastructure, indicating that while infrastructure exists to support trade, there are notable inefficiencies that could raise transaction costs and times if not addressed. Foreign direct investment net inflows amount to 1.66% of GDP (2024), signaling a moderate level of external financing that could be increased through improved governance, policy predictability, and targeted industrial strategies. The current account surplus of 14.9% of GDP (2024) complements the trade intensity narrative, suggesting solid external earnings from port activities, but the reliance on trade-related services also implies exposure to global demand volatility and shipping cycles. Renewable energy use at 26.9% of total final energy consumption (2022) and the modest level of high-technology exports (86.7 million US$ in 2023) imply opportunities to diversify beyond gateway services toward higher value-added activities, including digital services, logistics-tech, and localized manufacturing. Overall, Djibouti sits at a strategic crossroads where policy choices around infrastructure, governance, and regional integration could unlock deeper integration into intra-African and global value chains while mitigating exposure to external shocks.

Governance and Institutions

Governance indicators highlight structural challenges. In 2023, Political Stability and Absence of Violence/Terrorism stands at -0.517, Regulatory Quality at -0.933, Rule of Law at -1.13, and Control of Corruption at -0.781, with Government Effectiveness at -0.731. These values place Djibouti in a category characterized by weak perceptions of political stability, regulatory quality, legal enforcement, and anti-corruption effectiveness. The negative readings imply governance environments that may complicate contract enforcement, policy continuity, and investor confidence, potentially raising the cost of capital and delaying development projects. While inflation remains moderate, the broader governance weaknesses suggest that improvements in public administration, rule of law, and transparency could yield higher private-sector investment, better public service delivery, and stronger institutions capable of sustaining growth and social development. Addressing governance bottlenecks could thus be pivotal to unlocking Djibouti’s growth potential, particularly in a trade- and port-centric economy that demands predictable policy frameworks, efficient customs, and credible institutions to compete regionally.

Infrastructure and Technology

Djibouti’s infrastructure and technology profile reflects a mix of strategic assets and constraints. The country benefits from a prominent port and logistics hub that can anchor regional trade, yet its Logistics Performance Index score of 2.3 out of 5 (2022) signals remaining inefficiencies in trade- and transport-related infrastructure. Internet penetration is 65.0% (2023), indicating substantial digital connectivity that can enable e-government, online services, and digital inclusion, though there is room for broader access and digital literacy. Domestic innovation activity is limited, with resident patent applications totaling 3 in 2021, pointing to a nascent innovation ecosystem or limited local R&D capacity. High-technology exports are modest at 86.7 million US$ (2023), underscoring that advanced production activities are not yet a major feature of the economy. Energy use shows diversification, with renewable energy accounting for 26.9% of total final energy consumption (2022), suggesting a transition toward cleaner energy sources but with continued reliance on imports for fossil fuels. The per-capita greenhouse gas emissions are 1.85 t CO2e (2023), consistent with a relatively small, service- and port-oriented footprint. Given these dynamics, Djibouti has a solid platform for digital services and port-enabled logistics, but upgrading transport reliability, scaling R&D, and accelerating digital inclusion could significantly strengthen its infrastructure and technology base.

Environment and Sustainability

Djibouti faces environmental and climate-related pressures that intersect with its development trajectory. Water stress is moderate, with freshwater withdrawal as a share of available resources at 6.33% (2021), indicating manageable but real pressures on water resources that demand prudent water governance and adaptation planning, especially as urbanization and port operations expand. Total greenhouse gas emissions per capita are 1.85 t CO2e (2023), reflecting a small population and a relatively low-emission profile typical of services- and logistics-driven economies, though future growth could alter this trajectory if energy sources remain carbon-intensive. Renewable energy constitutes 26.9% of total final energy consumption (2022), indicating meaningful progress toward diversification and lower-carbon energy supply, with further gains possible through solar and wind investments given Djibouti’s climate. Food security remains a concern, with 12.9% of the population undernourished (2022), highlighting the need for resilient food systems and social protection in the context of climate variability and import dependence. Overall, Djibouti’s environmental indicators point to opportunities to expand renewables, strengthen water-resource management, and build climate resilience, while ensuring sustainable freight and port activities that underpin the economy.