Economic Trends

Due to intensive port activities, economic growth reached 1.5 percent in 1999. However the budget deficit was 2.1 percent. A new government elected in 1999 has pledged to support economic reform, privatization, and increased foreign investment. In 1999 the government concluded negotiations on a structural adjustment agreement with the IMF.

Djibouti is a major, well-equipped, international port, whose management has been recently turned over to a Dubai-based company. Ethiopia, a landlocked country, is the main user of the port. Fairly good roads link all the small towns to the capital city of Djibouti. Djibouti has an international airport, which can handle large aircraft. Regular air services connect Djibouti to the major cities in the region and to Paris. Connections can be made through Addis Ababa, Sana'a, or Paris. Government-owned Djibouti Telecom is one of the best telephone systems in the region. Electricity is provided by the state-owned company. The interior of the country is served by a road system covering 1,172 kilometers, one-third of which is asphalt. The 781 km of railroad linking Djibouti to Addis Ababa is being restructured by the French Development Agency and the European Union.