Djibouti's Macroeconomic Statistics

For this year, Djibouti has run a budget deficit of 1.8% of its gross domestic product; this number includes arrears on its domestic debt. The amount of foreign aid to Djibouti has decreased from 22.8 billion francs in 2008, to only 10.6 billion last year, meaning that budgetary support dropped from 13.1% of the GDP to five and a half percent. The high 2008 numbers are a reflection of the massive foreign aid that came as countries around the world helped Djibouti avoid a famine following the year's spike in food prices. For 2009, tax revenue increased slightly (from 22.7% to 23.1%), and Djibouti's total contribution to revenue increased by almost four percent.

Djibouti's government compensated for the decreased budgetary support by reducing public spending; it went from 40.6% to 37.3% last year. The country's wage bill barely changed, but Djibouti's military expenditures were cut by almost two-thirds. The budget deficit has shrunken this year, down to 0.1% of GDP. The drop is attributed to further spending cuts and increased aid.

Under 2009's public investment program, spending on new roads made up 13.7% of the gross domestic product; 78% of that money came from external sources. Energy and water disbursements rose by 844%, because of the ongoing project to connect Djibouti's power grid to that of Ethiopia. Spending on education projects amounted to 931 million francs for 2009, and the housing and urban planning sectors spent 1.9 billion.

The Arab Fund for Economic and Social Development/Abu Dhabi Fund for Economic and Social Development gave 353 million francs to a project to build 1,000 new homes. Hospital construction in Balbala accounted for most health care spending (649 billion francs). To improve the health care system's performance, the government of Djibouti increased the Health Ministry's budget from 8.4% of GDP to 15.5% in 2009.

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