Djibouti’s economic growth is primarily driven by the service, industrial, and infrastructure sectors, which collectively contribute significantly to its GDP. The country’s strategic location as a maritime hub enhances its service sector, particularly through port activities and military base revenues, fostering a modern economy alongside a large informal sector
Djibouti’s economic growth is primarily driven by the service, industrial, and infrastructure sectors, which collectively contribute significantly to its GDP. The country’s strategic location as a maritime hub enhances its service sector, particularly through port activities and military base revenues, fostering a modern economy alongside a large informal sector
Key Sectors Driving Growth
- Service Sector: Dominated by port services and logistics, this sector benefits from Djibouti’s geographical advantages, facilitating international trade and re-exports.
- Industrial Sector: The industrial activities, including telecommunications and health services, have shown a positive correlation with economic growth, although they face challenges due to high production costs.
- Infrastructure Development: Investments in transport and electricity are crucial, as they support both the service and industrial sectors, although agriculture, forestry, and fisheries have shown a negative impact on growth.
While these sectors are pivotal for growth, the reliance on capital-intensive models limits job creation, highlighting the need for diversification and labor-intensive sector development
