Djibouti¡¯s small economy is resuming acceleration. After growing by 4.1 percent in 2017 and 6.0 percent in 2018, output is expected increase by 7 percent in 2019 as international trade normalizes in Ethiopia following the successful political transition and the devaluation by 15 percent of the Ethiopian birr, in October 2017.
Growth will be driven by export of transportation and logistics services supported by the newly commissioned trade infrastructure.
Growth in the industrial sector will also remain strong as the nascent import- substitution manufacturing industry (mainly food processing and construction materials) develops.
The medium-term economic outlook is positive, as the Government¡¯s strategy of positioning the country as a regional trade, logistics, and digital hub gains traction. GDP growth is expected to reach 7.0 percent in 2019 before accelerating to 8.0 percent in 20120-2023. Growth will be supported by exports of transportation, logistics, and telecommunication services, as the country harvest dividends from its ambitious investment program.