Yemen 2018 Socio-Economic Update, Issue 34 - June 2018 [EN/AR]
Yemenis have been living in fragile economic conditions for decades, which exacerbated unprecedentedly during the ongoing conflicts in Yemen. The cumulative contraction in real GDP was estimated at about 47.1% over the past three years(1). Without achieving rapid, just and sustainable peace and neutralizing the economy from war, the cumulative losses in real GDP are likely to increase to $49.9 billion (without physical losses) by the end of 2018(1).
In parallel, the public budget has collapsed under the influence of the division of state institutions and public resources, particularly division of the monetary authority, disruption of hydrocarbon revenues. State employees, with millions of dependent children and women, in several governorates haven’t received monthly salaries for more than 14 months and pensions of more than 41,000 retirees in the General Authority for Insurance and Pensions have stopped since March 2017(2). In addition to the emergence of a severe liquidity crisis and a crisis of confidence that are besetting the banking system locally, amid its undermining credibility in the eyes of the global financial system. As of April 2018, the parallel exchange rate of US dollar increased by about 126% against national currency(3), prices have soared and Yemen is currently facing one of the world’s largest humanitarian crises.
To avoid further losses and crises and out of mercy for Yemenis, it is important to ensure the unification of the CBY and mobilization of non-inflationary resources to pay salaries of state employees, pensions, social welfare assistances and resumption of basic social services, even at the minimum levels.
In this Edition
First: Importance of Neutralizing Yemen’s Economy
Second: Yemen’s Economy During the War
Third: Economy in Conflict-affected Countries.
Fourth: Priorities and Requirements for the Neutralization of Yemen’s Economy