Located along a strategic international trade route that connects Africa, the Middle East, Europe and Asia, Djibouti’s economic development has been linked with rising global commerce. In order to fully harness its geographic advantages and maintain its competitiveness, the country is now focusing on infrastructure improvements and a gradual diversi-fication of its economy. This will require considera-ble amounts of foreign investment over the coming years, but it will also depend on support measures for private sector development, as well as a careful balancing of the state budget. However, so far the small country has managed to successfully maintain a robust growth rate – in spite of the turbulence of global markets, including the low oil price, the rising US dollar and the slowing Chinese economy – which bodes well for its near- and medium-term outlook.