Djibouti’s economy is extremely open to external trade, which represents 340% of GDP, the fourth-highest ratio in the world (World Bank, latest data available). The country has a free trade regime and a free-trade zone status in Eastern Africa. It is a member of the WTO, the IGAD (Intergovernmental Authority on Development), the COMESA (Common Market for Eastern and Southern Africa), the Arab League, and the African Union, has signed the African Continental Free Trade Agreement and a number of bilateral agreements. Djibouti mainly exports or re-exports palm oil (55.2% of total exports), chlorides (16.6%), seed oils (4.9%), flax yarn (2.5%), and bovine (1.9%); whereas imports are led by refined petroleum (10.6%), palm oil (7%), mixed mineral or chemical fertilizers (6.3%), cars (3.8%), and raw sugar (3.4% - data OEC 2022).
Djibouti’s main customers are Ethiopia (61.4% of total), China (16.6% of total), India (7.2%), Jordan (2.1%), and the Central African Republic (1.4%). The country's main suppliers are China (37.7%), United Arab Emirates (20%), India (10.1%), Morocco (6.2%), and Turkey (5.9%). The economies of Ethiopia and Djibouti are highly interdependent via the Port of Djibouti, which traditionally constituted the only maritime outsource for the landlocked territory of Ethiopia.
Djibouti’s trade balance is structurally negative, as it does not export much except cattle and imports large amounts of petroleum products, food, and capital goods. However, the country has a surplus in terms of exports in the service sector, largely due to port services fees for re-import and re-exports. In 2022, exports of goods amounted to USD 4.5 billion whereas imports reached USD 5.4 billion (WTO). Concerning services, exports stood at USD 1.1 billion against USD 632 million in imports. The country’s trade balance was estimated to be negative by 2.2% of GDP in 2022, according to the World Bank. In the same year, the trade deficit widened due to the rising cost of oil and foodstuffs.
Foreign Trade Indicators | 2019 | 2020 | 2021 | 2022 | 2023 |
---|---|---|---|---|---|
Imports of Goods (million USD) | 4,138 | 2,911 | 4,870 | 4,328 | 4,663 |
Exports of Goods (million USD) | 3,996 | 2,785 | 4,147 | 4,601 | 5,002 |
Imports of Services (million USD) | 626 | 514 | 0 | 769 | 0 |
Exports of Services (million USD) | 1,154 | 910 | 0 | 1,073 | 0 |
Imports of Goods and Services (Annual % Change) | 10 | -30 | n/a | n/a | n/a |
Exports of Goods and Services (Annual % Change) | 9 | -30 | n/a | n/a | n/a |
Trade Balance (million USD) | -142 | -127 | -723 | n/a | n/a |
Foreign Trade (in % of GDP) | 321 | 223 | n/a | n/a | n/a |
Imports of Goods and Services (in % of GDP) | 154 | 107 | n/a | n/a | n/a |
Exports of Goods and Services (in % of GDP) | 167 | 116 | n/a | n/a | n/a |
Source: WTO – World Trade Organisation ; World Bank - Latest available data.
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1.0 bn USD of services exported in 2021 | |
---|---|
56.71% | |
31.46% | |
8.04% | |
3.79% | |
Personal travelPersonal travel | 3.79% |
OtherOther | 39.50% |
0.6 bn USD of services imported in 2021 | |
---|---|
85.62% | |
5.40% | |
3.15% | |
3.09% | |
2.74% | |
Personal travelPersonal travel | 2.74% |
OtherOther | 11.65% |
Source: United Nations Statistics Division, Latest Available Data
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Latest Update: May 2024