Report by WTO Secretariat

Located in the Horn of Africa, Djibouti is a least developed country (LDC) and has been classified by the World Bank as a lower-middle-income country. It had a gross national income per capita of USD 5,610 in 2020. Its geographical location, port infrastructure and political stability make it a major maritime hub and have prompted several countries to establish military bases there. Revenue from the bases and from port activities has fostered the emergence of a modern segment of the economy that coexists with a large informal sector. However, the high cost of production factors and the strong presence of public companies continue to hinder the country’s economic development. Given Djibouti’s narrow production base, international trade is fundamental for the country, which relies almost exclusively on imports to meet its domestic demand for most goods and some services. Thanks to the infrastructure (especially ports), re-exports far outstrip exports.