The Yemeni economy is expected to grow by 1.2% in 2022
English - Saturday 12 February 2022 الساعة 08:27 am
Aden, NewsYemen, special:
The Trading Economist has forecast that Yemen's GDP will return to growth and the economy will expand by 1.2% in 2022, driven by rising oil prices in the global market.
The company, the leading provider of economic analysis and forecasts for 130 countries, confirmed in the "Yemen Economic Outlook" report that economic growth in Yemen this year will return to growth, albeit in a timid way.
The "Trading Economist" indicated that the risk deviation to the negative side, with the escalating currency crisis, opposition to economic policies in a divided country, and the exacerbation of conflict, may hinder expectations.
Oil prices have breached the level of $90 a barrel, which enhances the growth of the Yemeni economy and overcome the 7-year deflationary phase, which raises the revenues of Yemeni oil exports according to the volume of daily production to 196 million dollars per month.
Oil revenues constitute 60% of the state budget resources, 63% of total exports, and 30% of GDP.
Since August 2021, Yemen's production of crude oil has increased to 71 thousand barrels per day, according to what was published by the "Trading Economist" website on the US Energy Information Administration.
The increase in Yemen's production of crude oil last year, from 55 thousand barrels to 71 thousand barrels per day, came as a result of the resumption of production in some productive sectors in the governorates of Shabwa and Marib.
The government’s revenues from oil revenues in 2021 are estimated at about two billion dollars, but the government refrains from declaring the value of the revenues from oil sales, which caused donors to refrain from providing financial aid to Yemen, due to the lack of transparency.
Oil revenues constituted the largest inflow of foreign currency into Yemen, and according to official reports, Yemen was producing 127,000 barrels of crude oil per day prior to 2015.
