DJIBOUTI - After rebounding in 2021, Djibouti's economy has slowed since early 2022 due to the war in Ukraine, global inflation, severe drought and weak Ethiopian demand. However, growth is expected to pick up again to 5.3% in 2023 and 6.2% in 2024, according to the latest edition of the World Bank's Djibouti Economic Monitor. The semi-annual report analyzes development trends and constraints in Djibouti: titled “Towards sustainable growth: Improving fiscal stability and competitiveness of the digital sector”, this estimates real GDP growth at 3.6% for the whole of 2022, down from 4.3% in 2021. Global surges in oil and food prices have pushed up inflation this year: the annualized rate at the end of June 2022 was 11%. In addition, measures to mitigate the impact of the war in Ukraine and the worsening drought have put pressure on the budget deficit and public debt service more than tripled in 2022, leading the government to temporarily suspend some debt payments abroad. “Urgent action is needed for Djibouti's economy to recover over the next two years. This includes accelerating structural reforms, fiscal consolidation and implementing public and private investment programs,” said Boubacar-Sid Barry, World Bank representative in Djibouti. The report discusses the current government's plans that aim to strengthen the country's resilience to the multiple shocks it faces and create more economic opportunities: Djibouti's strategy to diversify its port activities aims to capture more value in international trade. This strategy includes the development of a ship repair yard, a new oil terminal and a new business district in the old port. Additionally, the country is developing a national strategy for promoting a green economy, which aims to address the impact of climate change and generate additional income for its population. The special chapter of the report examines the economic promise of unlocking Djibouti's digital sector by ending Djibouti Telecom's near-monopoly: the report notes that opening up the sector to competition would produce cheaper and better services that would support the emergence of new industries, strengthen the country's position as a regional hub and attract more private investors. The development would give a boost to the country's numerous micro, small and medium-sized enterprises and increase employment and entrepreneurship opportunities for young Djibouti (ICE ADDIS ABEBA)

Fonte notizia: infoafrica