Economists: The government's failure to waste 5 opportunities for the economy
English - Monday 29 June 2020 الساعة 07:10 pm
Aden, Newsyemen, private:
Non of Saudi Arabia or any other donor have yet shown their willingness to provide continuous funding for Yemen - which is rapidly heading towards severe economic collapse - due to the Hadi government’s failure to improve its internal capacity to manage the economy, and growing waste and corruption.
Economists confirm to "Newsyemen", that the government has failed to restore the capabilities of the economy, and lost real opportunities granted to it during the past years, which were sufficient for the Yemeni economy to cross the stage of weakness and reduce dependence on external financing.
They added, Saudi Arabia is not satisfied with the lack of progress in terms of strengthening the capacity of the government and the Central Bank of Yemen - Aden to manage and implement Saudi investments in the economy.
The country's position to meet the requirements of foreign currencies is much more dangerous with Saudi deposits close to depletion, low revenues from export of crude oil, the decline of the first and second largest source of foreign currency to Yemen, expatriate remittances and humanitarian funds.
According to economists, the government missed the opportunity to print currency, Saudi financial support, oil resources, deal with the outside world and international financial institutions, and mobilize and operationalize voluntary institutions and interests.
According to economic reports, the most important opportunities missed by the Hadi government were Saudi financial support of $ 3 billion and $ 380 million, without army salaries, oil revenues of $ 3 billion, printing of one trillion and 700 billion riyals, and the recognition of the bank and the International Monetary Fund to the Yemeni Central Bank - Aden, and the stoppage Complete projects and infrastructure maintenance.
Economic indicators indicate that five years after the liberation of the resource-rich governorates, economic vulnerability has increased - depletion of the Saudi deposit, the depreciation of the riyal, the decline in oil revenues, financial transfers and humanitarian funds, the fragmentation of resources between the governorates, and the decrease in confidence in the ability of economic institutions run by the government.
Food and basic commodity prices have also doubled in line with the riyal inflation, poverty, unemployment and humanitarian needs have risen, Yemen has been inundated with debts, epidemics have broken out, basic social institutions and services have collapsed, and the dilapidated infrastructure has been eroded.
