Major investments over the past decade have led to strong economic growth in Djibouti, but the effect of investment programs has not been significant: most of the funds have been invested in the development of infrastructure connecting Ethiopia with world markets, as Djibouti's economic development is directly linked to the country's strategic position and close foreign trade relations with Ethiopia.

Djibouti is located on one of the busiest sea routes between the Gulf of Aden and the Red Sea, and is of great strategic importance for international trade. The driving force of Djibouti's economy is a modern port, one of the most technologically advanced in the world. The port of Djibouti serves as a key refueling and transshipment center for maritime transport companies, as well as the main sea outlet for imports and exports from Ethiopia and other landlocked African countries. Thanks to Djibouti's transit position, the country receives transit taxes and port fees from commercial activities, which make up the bulk of government revenue.

Threats of piracy from Somalia and internal political instability in Yemen have created the need for the United States, France, Japan, China, Germany, Spain, Italy, Great Britain, Saudi Arabia, Turkey to deploy military/naval bases in order to protect cargo, combat piracy and maintain security on one of the main shipping routes connecting Asia and Europe, Africa and the Middle East through the Bab-el-Mandeb Strait.
Economic recovery after COVID-19 in 2021 was held back by disruptions in international trade, as well as weak demand from Ethiopia due to the escalation of the military conflict and severe drought in 2022. As a result, after a rapid recovery in 2021, Djibouti's GDP growth rate slowed from 4.8% to 2.5% in 2022.

The main task for the Government of Djibouti in the coming years is to adjust and differentiate its economic growth model in order to reduce dependence on investments coming from credit funds, while at the same time supporting an inclusive recovery after a series of external shocks during 2020-2022. This includes accelerating structural reforms, fiscal consolidation, and the implementation of private and public investment programs.

In addition, it is expected that the cessation of the war in Tigray at the end of 2022 will have a positive impact on the acceleration of Ethiopia's economic growth in the medium term. In 2023-2028, the growth rate of the Ethiopian economy will be in the range of 6-7%, which is higher than the average of 4% in sub-Saharan Africa. Positive forecasts for the development of the Ethiopian economy, as well as investment programs of private and public organizations in Djibouti in the medium term will contribute to the recovery of the country's economy, and trade through the ports of Djibouti will grow rapidly in parallel with the growth of the economy of the main trading partner — Ethiopia. Thus, it is expected that in 2023 the GDP growth rate will be 4.0% and, while maintaining positive dynamics in 2024, it will reach 6.0%. However, the socio-economic prospects for the development of Djibouti in the coming years still strongly depend on regional developments and the situation on the world market.

During the analyzed period, Djibouti's GDP per capita has a positive trend. However, the size of GDP remains low (137th out of 192 countries).

In 2022, the figure was $6,470, and by 2028, according to the IMF forecasts, it will reach $9,250.

In 2022, inflation was 5.5%, reaching the first peak in the last 14 years, when in 2008 inflation was at the level of 8.7%. The main reason for the sharp increase in inflationary pressure is the rapid increase in prices for essential goods (primarily food), the global imbalance of supply and demand caused by regional and external negative factors. Nevertheless, inflation in Djibouti remains below the regional level, which is facilitated by the relative stability of the exchange rate and fuel prices in the domestic market. It is expected that price pressure will decrease in 2023-2024, and inflation will average 3.2%. However, Djibouti's macroeconomic trends will continue to depend heavily on developments in global and regional markets (primarily in Ethiopia).