IMF Staff Country Reports

Djibouti's investment-focused strategy has propelled average growth rates to about 6 percent over the past decade, leading to a doubling of GDP per capita. However, substantial public investment coupled with declining revenues and rising debt service have constrained fiscal space and put pressure on debt sustainability. In 2024, growth remained strong at about 6½ percent, driven by robust transshipment amid Red Sea maritime disruptions. Inflation was moderate, and fiscal and reserve positions improved following temporary overruns. The authorities are pursuing fiscal consolidation and debt negotiations to restore debt sustainability and strengthen reserves.