Page "Economy of Djibouti" Paragraph 2

Despite the recent modest and stable growth, Djibouti is faced with many economic challenges, particularly job creation and poverty reduction.

With an average annual population growth rate of 2. 5 percent, the economy cannot significantly benefit national income per capita growth.

Unemployment is extremely high at over 43 percent and is a major contributor to widespread poverty.

Efforts are needed in creating conditions that will enhance private sector development and accumulate human capital.

These conditions can be achieved through improvements in macroeconomic and fiscal framework, public administration, and labour market flexibility.