The economy of Djibouti is dominated by the service sector, which accounts for 76.6 percent of its GDP. It is largely derived from the strategic location, providing income opportunities from transportation of goods to Ethiopia, port services, hosting of French and US military bases, and foreign aid. Although the recent inflow of refugees from Somalia and other neighboring countries has affected the economy, the strong trade activities with Ethiopia as well as port services have created a relatively firm base for stable economic growth. However, the benefits of this growth have not been evenly distributed among different regions, and the economic disparity between urban and rural areas has widened significantly. In addition, repeated droughts caused by climate change have had negative impact on agricultural and livestock productivity in rural areas. JICA's support to Djibouti is primarily focused on water, energy, strengthening the Coast Guard (to boost the capacity to secure maritime safety), and vocational training.
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