## IMF Staff Concludes Visit to Djibouti

_IMF News, December 12, 2024_

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**Canonical URL:** [IMF Staff Concludes Visit to Djibouti](https://www.imf.org/en/news/articles/2024/12/12/pr-24465-djibouti-imf-staff-concludes-visit)

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## Bibliographic details
- Published: December 12, 2024

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### Mission overview
- IMF team led by Ms. Esther Pérez Ruiz visited Djibouti from December 8 to 12, 2024.
- Press Release No. 24/465.
- End-of-Mission statement: views are those of IMF staff and do not necessarily represent the views of the IMF’s Executive Board. This mission will not result in a Board discussion.
- Media contacts: IMF Communications Department, PRESS OFFICER: Mayada Ghazala, Phone: +1 202 623-7100, Email: MEDIA@IMF.org.

### Economic outlook and key projections
- Growth in FY24 is projected at a robust 6 ½ percent, driven by increased transshipments as shipping companies navigate Red Sea tensions.
- Inflation remains moderate due to authorities stabilizing energy and food prices to mitigate rising import costs.
- Fiscal deficit for FY24 is projected to stabilize at about 3 ½ percent of GDP, as reduced interest payments from a debt service moratorium with a major creditor, effective through 2028, offset weaker tax revenues and grants.
- International reserves have been declining over the past two years, standing at over three months of imports as of September 2023.

### Risks and scenarios
- Downside risks:
  - Limited job creation, which could disproportionately affect the poor.
  - Recurrence of droughts.
  - Continued disruptions in the Red Sea affecting maritime activity.
- Upside scenarios:
  - Stronger-than-expected growth in Ethiopia.
  - Swift resolution of Red Sea disruptions enhancing Djibouti’s overall outlook.

### Policy priorities and recommendations
- Immediate priority: strengthen economic resilience and the credibility of the policy framework amid an uncertain regional environment and constrained policy space.
- Debt and external obligations:
  - Expedite debt negotiations with key creditors.
  - Leverage the debt service moratorium (effective through 2028) while addressing substantial outstanding external obligations.
- Fiscal policy and revenue mobilization:
  - Enhance revenue mobilization by shifting from customs duties to inland revenues.
  - Leverage dividends from profitable state-owned enterprises to improve fiscal space.
- Monetary and institutional measures:
  - Support the Central Bank’s independence from the fiscal authority under the currency board to sustain reserves, exchange rate, and inflation stability.
- Structural reforms and growth:
  - Revise military base agreements where relevant.
  - Advance reforms under enhanced monitoring by the MENAFATF to sustain a favorable investment climate.
  - Promote cost-effective energy and develop job-rich sectors such as tourism to foster inclusive growth, in line with Djibouti Vision 2035.

### Engagement and next steps
- Authorities remain committed to policies promoting macroeconomic stability, restoring debt sustainability, and advancing economic diversification to support job creation.
- IMF mission expressed appreciation for Djiboutian authorities for cooperation and looks forward to continued close engagement.

*Source: IMF Staff Concludes Visit to Djibouti — Press Release No. 24/465 (December 12, 2024).*

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## References

- [Djibouti and the IMF](http://www.imf.org/external/country/DJI/index.htm)
- [The Federal Democratic Republic of Ethiopia and the IMF](http://www.imf.org/external/country/ETH/index.htm)
- [Press Releases](https://www.imf.org/en/news/searchnews)
- [PRESS CENTER](http://presscenter.imf.org/)
- [https://www.imf.org/en/home](https://www.imf.org/en/home)

_Source: https://www.imf.org/en/news/articles/2024/12/12/pr-24465-djibouti-imf-staff-concludes-visit_