Knowledge Note

"Real GDP growth is projected at -1% compared to an average of 7% per year from 2015 to 2019, as a result of COVID-19."

Economic activity contracted in 2020 for the first time in two decades, as a result of COVID-19. Per capita GDP growth in Djibouti is expected to fall by 2.5 compared to the average annual growth of 5.4% during 2015-2019, with a consequent effect on impressive poverty reduction progress. A resurgence of COVID-19 and delicate transitions across the Horn of Africa are the major risks to the medium-term outlook as they would undermine the productivity of sizable infrastructure investment.