The Yemeni economy's contraction expanded by 2.2% in 2021
English - Sunday 16 May 2021 الساعة 03:44 pm
Aden, NewsYemen:
FocusEconomics, the global provider of economic data and analysis covering nearly 131 countries, expects the Yemeni economy to expand by 2.2% in 2021.
He added, "The prospects for next year are not reassuring, as international aid has become more limited in recent months and peace talks are not moving forward, which risks not only the continuation of the conflict, but its escalation, which may impede the potential recovery."
The Yemeni economy is burdened by declining oil revenues and declining remittances, a situation made worse by the impact of desert locusts on the crop season.
Yemen is an oil exporter and food importer with low levels of domestic industrial production and a shortage of raw materials. According to the United Nations, the humanitarian crisis in Yemen is the worst in the world.
The Yemeni economy has become dependent on a variety of imports. Indeed, escalating conflict over six years has exacerbated existing economic problems, increased unemployment, and increased shortages of food, water and medical resources.
Yemen is facing a decline in the three sources of foreign currency - humanitarian aid, remittances, and oil exports - a largely negative impact on domestic purchasing power.
The real GDP of Yemen at constant prices recorded a contraction of about 11.7% annually during the period 2014-2019, and the value of the real GDP decreased significantly from 2 trillion and 214 billion riyals in 2014 to one trillion and 168 billion riyals in 2018.
