Djibouti: 2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Djibouti
IMF Staff Country Reports, October 23, 2019
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- Djibouti: 2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Djibouti
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Bibliographic details
- Published: October 23, 2019
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513517360.002
Overview and context
- Large-scale infrastructure investments and a rapid expansion of trade and logistics activities have fueled strong growth in recent years.
- The government implemented large-scale investments to develop transport and logistics infrastructures.
- Combined with business climate reforms, this development strategy has positioned Djibouti to become a regional trade and logistics hub.
Growth outlook and baseline projections
- IMF staff’s baseline projections assume a significant reduction in debt financed public investment.
- Growth is nonetheless projected to remain strong, driven by:
- rapid expansion in Ethiopia’s trade, and
- a pickup in private investment.
External position, debt, and vulnerabilities
- Fostering higher and inclusive growth and bolstering the external position require addressing impediments to private sector investment and improving external competitiveness.
- Subjects highlighted include: Current account balance, Debt service, Debt sustainability analysis, Expenditure, External debt, Public debt.
- Keywords and vulnerabilities noted: control debt accumulation, debt vulnerability, liability positions vis-à-vis nonresident, infrastructure investment boom, government efficiency, governance issue, public enterprise efficiency.
Critical reform priorities and policy recommendations
- Further enhance the business environment.
- Promote competition.
- Improve the governance and efficiency of public enterprises to lower factor costs, particularly in the telecommunications and electricity sectors.
- Address impediments to private sector investment to foster higher and more inclusive growth and to strengthen the external position.
Document and access note
- The publication is an IMF Staff Country Report consisting of substantive analysis, projections, and policy recommendations on Djibouti’s economy.
Source: Djibouti: 2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Djibouti, October 23, 2019.
Content in this bundle
- 1djiea2019002