IMF Working Papers

Djibouti’s Quest for Inclusive Growth

ByAlexei P Kireyev

December 5, 2017

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Format: Chicago

Alexei P Kireyev. "Djibouti’s Quest for Inclusive Growth", IMF Working Papers 2017, 270 (2017), accessed 12/7/2025, https://doi.org/10.5089/9781484331118.001

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Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

The paper reviews Djibouti’s macroeconomic reforms aimed at achieving middle-income status as envisaged in Vision Djibouti 2035, the authorities’ development strategy. In this context, the paper reviews policy options available to the authorities in three critical reform areas: translating the investment boom into strong and inclusive growth to reduce poverty and unemployment; fiscal policy to support growth while preserving debt sustainability; and the important role of the business climate in growth acceleration.

Subject: Business environment, Economic sectors, Expenditure, Fiscal policy, Fiscal space, Poverty, Public debt

Keywords: Business environment, debt ratio, debt sustainability, decision-making framework, Djibouti, East Africa, economic growth, export-led growth, Fiscal space, government consumption multiplier, growth, inclusiveness, inequality, per capita income, poverty line, poverty rate, poverty reduction, public enterprise, reform program, short-term debt, tax burden, WP