Debt vs GDP / Bonds vs bills
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All Data - Djibouti
|GDP (billions US$)||1.35||1.46||1.62||-||-||-|
|Total Outstanding Amount (Billion US$)||-||-||-||-||-||-|
|Outstanding Amount/GDP (%)||0.00%||0.00%||0.00%||-||-||-|
Djibouti has a dual economy. On the one hand, it has a modern sector, based on rental revenue from the ports and military bases rented by foreigners. On the other hand, it still has a large informal sector. The economy is focused on services, in particular transport and related services, due to the country’s geostrategic position on the Gulf of Aden, at the intersection of maritime corridors important to the transport of goods and oil. The construction, hotel and telecommunication sectors are growing but are not yet significant. The Chinese investment of the past three years could change the economy’s structure, given the development of special economic zones (SEZs) to attract processing industries as part of global value chains.
Djibouti is developing its infrastructure, particularly its ports, to promote rapid growth and reduce poverty. Led by major investment projects, the growth of recent years (6.7% in 2015 and 6% in 2014) will continue, with rates of 7.4% and 7.1% forecast for 2016 and 2017. Despite this upturn, extreme poverty and unemployment remain endemic. Critically, Djibouti’s debt was 65.8% of GDP in 2015 and is expected to reach 75.8% in 2016 before reaching the 79% threshold in 2017, placing the country at high risk of over-indebtedness.
To face these challenges, since March 2014 a new strategic framework, Djibouti Vision 2035, is aimed at the country’s economic emergence by that date. Its first medium-term product is a five-year strategy for rapid growth and job creation (Stratégie de croissance accélérée et de promotion de l’emploi, Scape), launched in August 2015.
Source : African Economic Outlook 2016
Monetary policy & Public debt
The monetary policy framework of the Central Bank of Djibouti seeks to maintain the pegged exchange rate between the Djibouti Franc (DF) and the U.S dollar (177.721 DF per USD). The existence of this framework enables the control of the inflation rate. However, the Central Bank can no longer implement independent fiscal and monetary policies.
Fiscal policies are being reviewed by the government. In 2008, an Extended Credit Facility (ECF) was extended by the IMF. The objectives of the ECF were to strengthen public financial management and reform the financial sector. The implementation of the ECF lowered the deficit down to 0.6% in 2010. This outcome was offset by the contraction of the economy from 5% to 3.5%.
The largest component of Djibouti’s public debt is external debt. In 2013, external debt reached 124.3 millions FDJ, or a 5.5 % increase from 2012. The indebtedness ratio reached 48,1%, which is above the 46% threshold.