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flag Djibouti’s economy faces risks from Ethiopia’s instability and rival ports, despite its stable infrastructure and foreign investment.

flag Djibouti’s economy, heavily reliant on Ethiopia for trade and imports, faces risks due to Ethiopia’s political instability and the development of rival ports like Somaliland’s Berbera, which could divert freight routes. flag While Djibouti remains a stable investment hub with strong infrastructure and growing trade, its long-term economic outlook depends on Ethiopia’s stability and continued foreign investment. flag China’s expanding military and economic presence, including a major base and infrastructure projects, adds strategic complexity, raising concerns about shifting regional power dynamics.

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