Yemen

Yemen Economic Forecast

Yemen Economic Outlook

The war-torn country’s economy will have remained in a dire state so far this year. However, in late February, a general goods cargo ship docked at Houthi-controlled Hodeidah for the first time in at least seven years. This feat signals further progress in trust-building between the warring parties, boding well for peace talks. In further positive news, in late February, Saudi Arabia deposited USD 1 billion to Yemen’s Central Bank, which should alleviate some pressure on the Yemeni rial. Meanwhile, in late February, the UN appealed for USD 4.3 billion in aid for this year; the funds would be used to support and protect citizens. So far, USD 1.2 billion has been pledged. For reference, in 2022 USD 2.2 billion in funding was secured. Additionally, the UK recently launched a new food security program that will help up to 40,000 people on a monthly basis.

Yemen Inflation

While it will remain in double-digit territory and be among the highest in the region, inflation should nearly halve this year from 2022. Upside risks include a volatile currency and a high import bill due to still-elevated prices for fuel and food—around 90% of which is imported. The potential return to conflict is another factor to monitor.

Yemen Economic Data

2017 2018 2019 2020 2021
Population (million) 28.3 28.9 29.6 30.2 30.9
GDP (USD bn) 20.7 22.9 25.2 28.0 9.9
GDP per capita (USD) 734 792 853 924 322
GDP (YER bn) 5 5 6 6 10
Economic Growth (Nominal GDP, ann. var. %) -2.4 10.4 10.2 10.7 47.2
Economic Growth (GDP, ann. var. %) -10.6 -0.8 1.4 1.2 -1.0
Fiscal Balance (% of GDP) -4.9 -7.8 -5.9 -4.8 -2.2
Public Debt (% of GDP) 77.4 74.5 76.5 84.0 69.7
Inflation (CPI, ann. var. %, aop) 30.4 27.6 12.0 23.1 45.7
Exchange Rate (YER per USD, eop) 250 250 250 250 250
Exchange Rate (YER per USD, aop) 250 250 250 250 251
Current Account Balance (USD bn) -0.4 -0.3 -0.8 -1.1 -1.0
Current Account Balance (% of GDP) -1.8 -1.2 -3.3 -4.0 -10.2
Merchandise Trade Balance (USD bn) -3.0 -3.3 -4.7 -4.7 -4.9
Merchandise Exports (USD bn) 0.1 0.0 0.0 0.0 0.1
Merchandise Imports (USD bn) 3.1 3.3 4.7 4.7 5.0
Merchandise Exports (ann. var. %) 305.7 -47.7 -39.6 9.0 284.1
Merchandise Imports (ann. var. %) 1.4 7.0 42.5 0.5 5.8
Foreign Direct Investment (USD bn) -0.3 -0.3 -0.4 0.0 0.0
External Debt (USD bn) 7.2 7.0 7.1 7.1 7.6
External Debt (% of GDP) 34.7 30.7 27.9 25.5 76.3

Free Sample Report

Interested in Yemen economic reports, analysis and data? FocusEconomics provides data, forecasts and analysis for hundreds of countries and commodities. Request your free sample report now.

Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest