Overview: Whereas the northern city Sanaa is the political capital of a united Yemen, the southern city Aden, with its refinery and port facilities, is the economic and commercial capital. Future economic development depends heavily on Western-assisted development of its moderate oil resources. Former South Yemen's willingness to merge stemmed partly from the steady decline in Soviet economic support. The low level of domestic industry and agriculture have made northern Yemen dependent on imports for practically all of its essential needs. Large trade deficits have been compensated for by remittances from Yemenis working abroad and by foreign aid. Because of the Gulf crisis, remittances have dropped substantially. Once self-sufficient in food production, northern Yemen has become a major importer. Land once used for export crops - cotton, fruit, and vegetables - has been turned over to growing a shrub called qat, whose leaves are chewed for their stimulant effect by Yemenis and which has no significant export market. Economic growth in former South Yemen has been constrained by a lack of incentives, partly stemming from centralized control over production decisions, investment allocation, and import choices. Nominal growth in 1994-95 is apt to be under 3% annually because of low oil prices and political deadlock that is causing a lack of economic cooperation and leadership.

National product: GDP - exchange rate conversion - $9 billion (1993 est.)

National product real growth rate: 3.1% (1993 est.)

National product per capita: $800 (1993 est.)

Inflation rate (consumer prices): 55% (1993 est.)

Unemployment rate: 30% (December 1992)

Budget:
revenues: $NA
expenditures: $NA, including capital expenditures of $NA

Exports: $695 million (f.o.b., 1993 est.)
commodities: crude oil, cotton, coffee, hides, vegetables, dried and salted fish
partners: Italy 55%, US 32%, Jordan 5% (1991)

Imports: $1.6 billion (f.o.b., 1993 est.)
commodities: textiles and other manufactured consumer goods, petroleum products, sugar, grain, flour, other foodstuffs, cement, machinery, chemicals
partners: UAE 6%, Japan 6%, Saudi Arabia 6%, Kuwait 6%, US 6% (1991)

External debt: $7 billion (1993)

Industrial production: growth rate NA%, accounts for 18% of GDP

Electricity:
capacity: 714,000 kW
production: 1.224 billion kWh
consumption per capita: 120 kWh (1992)

Industries: crude oil production and petroleum refining; small-scale production of cotton textiles and leather goods; food processing; handicrafts; small aluminum products factory; cement

Agriculture: accounted for 26% of GDP; products - grain, fruits, vegetables, qat (mildly narcotic shrub), coffee, cotton, dairy, poultry, meat, fish; not self-sufficient in grain

Economic aid:
recipient: US commitments, including Ex-Im (FY70-89), $389 million; Western (non-US) countries, ODA and OOF bilateral commitments (1970-89), $2 billion; OPEC bilateral aid (1979-89), $3.2 billion; Communist countries (1970-89), $2.4 billion

Currency: Yemeni rial (new currency); 1 North Yemeni riyal (YR) = 100 fils; 1 South Yemeni dinar (YD) = 1,000 fils
note: following the establishment of the Republic of Yemen on 22 May 1990, the North Yemeni riyal and the South Yemeni dinar are to be replaced with a new Yemeni rial
Exchange rates: Yemeni rials per US$1 - 12.0 (official); 70 (market rate, April 1994)

Fiscal year: calendar year

NOTE: The information regarding Yemen on this page is re-published from the 1995 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Yemen Economy 1995 information contained here. All suggestions for corrections of any errors about Yemen Economy 1995 should be addressed to the CIA.