Djibouti Economy Monitor: Labor Market Structure and the School-to-Work Transition, Spring 2026

Country: Djibouti Source: World Bank Please refer to the attached file. Djibouti’s Economy Shows Resilience Amid Global Uncertainty DJIBOUTI, May 7, 2026 — Djibouti’s economy remained resilient in 2025, sustaining growth and macroeconomic stability despite a challenging global environment, according to the Spring 2026 edition of the Djibouti Economic Monitor: Labor Market Structure and the School-to-Work Transition , released today by the World Bank Group. Economic growth remained strong, with real GDP estimated at 6.5 percent in 2025, following a period of solid economic performance in recent years. Growth continued to be driven by services linked to Djibouti’s role as a regional logistics and trade hub, while domestic demand gained momentum as private consumption and investment strengthened in a context of low inflation. At the same time, Djibouti’s high exposure to trade and transport links leaves the economy particularly vulnerable to external shocks. Against this backdrop, the report documents recent labor market conditions and employment patterns. Inflation remained low over the past year, supported by Djibouti’s stable exchange-rate framework reflecting economic conditions observed in 2025. Public finances also improved, with the budget returning to surplus and public debt continuing to decline, helping to strengthen confidence in the economy. Djibouti maintained a solid external position, supported by trade and services activity, even as global conditions became increasingly uncertain and port traffic moderated from the exceptionally high levels recorded in the previous year. Looking ahead, growth is expected to remain close to 6 percent, driven by private consumption and investment. However, external developments, including regional security conditions, disruptions to ...

Original source: Relief Web