The economy of Djibouti is based on service activities connected with the country's strategic location and status as a free trade zone in northeast Africa. Two-thirds of the inhabitants live in the capital city, the remainder being mostly nomadic herders. Scant rainfall limits crop production to fruits and vegetables, and most food must be imported.
The City of Djibouti is the capital and largest city of the Republic of Djibouti. The Djibouti-Addis Ababa Railway runs from the city to Addis Ababa, while it is also home to the Djibouti-Ambouli International Airport. Northwest of the city centre lies the city's port, used for international trade, for fishing, and by ferries to Obock and Tadjoura.
Djibouti has an overall cost of living index which equates it with middle cost of living locations. The overall cost of living index is comprised of the prices for defined quantities of the same goods and services across all 13 Basket Groups.
The latest cost of living rank for each of the 13 Basket Groups is now available.