85- Given the structure of the ojibouti economy, alrost all major entries in thebalance of payments reflect activities relating to non-residents. Most of therecorded trexportsn are actually products in transit through Djibouti with little orno processing and thus minimal contribution to the economy: live animals, hidesand skins from nthlopia and "re-exporttr of products primarily to the Frenchmilitary base. Similarty, it is estimated that less than 50 per cent of therecordgd imports is for the consumption of Djiboutians and expatriates outside ofthe military base. Djibouti does benefit from the services associated with thistrade - port, communication and air-transport services - as well as servicesprovided to non-residents. Table 15 Djibouti: balance of payments: 1982-1985 (Millions of Djibouti francs) Exports Imports1982 20.8 33.8 -13.01983 16.5 31.3 -L4.7 5.3 4.7 4.1I984 ls.6 34.s -18.9 5.5 5.7 ITrade balance Net services 3.3Unreguited transfers g.O Capital cpvements (private and -3.9public and including errors and omission) 86. The decline in export earnings indicated above reflects in part budgetaryconstraints exercised by France with regard to its activities in ojibouti. nerhapsmore significant, however, is impact of the de facto appreciation of the Djiboutifranc vis-A-vis the French franc as a result?ttre strength of the united statesdollar to which it is tied. 87. traditionallyr external financing, both loans and grants, covered the balanceof payments deficit. Starting in 1982, these did not prove to be sufficient andthe Government was forced to draw down its foreign exchange holdings. Severalfactors contributed to the situation - an increase in proiits payable on foreigninvestments and in unreguited transfers abroad, increased capital imports, etc. Atthe same time, there was a significant decline in grant funds made available by thedonor community. The situation appears to have improved recently, and it isbelieved that there has been no further depletion of foreign reserves in 19g5.A/40/44L Englieh Page 33 B. DeveloPment, activlties 1. Special programme of economic assistance gg. The last review of progress made in implementing the special programme of economic assistance for Djibouti is contained in the report of the secretary-General (A/37/L361. At that time, it was indicated that only 4 of the 51 projects in the initial programme had not received any support' These as well as the projects belng implemented were incorporated in the investment programme presented to the 1983 donors conference. 2. 1983 donors conferenge 89. At the donors conference, held at Djibouti in libvember 1983r the Government
**Analysis**
The text appears to be discussing the economic situation of Djibouti, specifically its balance of payments, trade, and foreign exchange reserves. It highlights the country's reliance on non-resident activities, the decline in export earnings, and the impact of external financing on the economy. The text also mentions the government's special program of economic assistance and the donors conference held in 1983.

**Category**
International trade, Economic development