The World Bank: Yemen's economy is in rapid decline
English - Saturday 21 November 2020 الساعة 02:41 pm
Aden, NewsYemen, Exclusive:
The World Bank said that the economic situation in Yemen is witnessing a rapid deterioration, driven by a decrease in oil exports, a reduction in the volume of humanitarian support, weak infrastructure, natural disasters, and fragmentation of economic policies.
In its latest update, "Yemeni Economic Prospects October 2020," the bank said, "NewsYemen" obtained a copy of it, that the fragmentation of macroeconomic policies has increased pressure on weak economic conditions, and has had serious humanitarian consequences.
The armed conflict has entered its sixth year, and Yemen continues to face an unprecedented humanitarian, social and economic crisis, with the interruption of basic services and an acute shortage of basic production inputs.
It added, the distortions resulting from the fragmentation of the central bank's capabilities, and the conflicting policy decisions between areas of control, exacerbated the economic and humanitarian crisis.
It added, with the continued deterioration of the political and security situation, the social and economic conditions are still very difficult.
The report noted that the economic and social outlook for the remainder of 2020 and beyond is characterized by a great deal of uncertainty.
The report pointed out that a gradual recovery in global oil prices may help relieve pressure on the public finances of the internationally recognized government, which may limit the resort to central bank financing to cover the public budget deficit.
The report concluded that the cessation of armed conflict and political reconciliation, and the return to implementation of a unified macroeconomic policy, are prerequisites for rebuilding the economy and rebuilding the social fabric.
