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Yemen Economy 1996
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 the country's 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 has made northern Yemen dependent on imports for practically all
of its essential needs. 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. Yemen's large trade deficits have been compensated for by
remittances from Yemenis working abroad and by foreign aid. Since the Gulf
crisis, remittances have dropped substantially. Growth in 1994-95 is
constrained by low oil prices, rapid inflation, and political deadlock that
are causing a lack of economic cooperation and leadership. However, a peace
agreement with Saudi Arabia in February 1995 and the expectation of a rise
in oil prices brighten Yemen's economic prospects.
GDP - purchasing power parity - $23.4 billion (1994 est.)
-
National product real growth rate:
-
National product per capita:
-
Inflation rate (consumer prices):
$NA, including capital expenditures of $NA
$1.75 billion (f.o.b., 1994 est.)
crude oil, cotton, coffee, hides, vegetables, dried and salted fish
Germany 28%, Japan 15%, UK 9%, Austria 7%, China 7% (1992)
$2.65 billion (f.o.b., 1994 est.)
textiles and other manufactured consumer goods, petroleum products, sugar,
grain, flour, other foodstuffs, cement, machinery, chemicals
US 16%, UK 7%, Japan 6%, France 6%, Italy 6% (1992)
growth rate NA%, accounts for 18% of GDP
crude oil production and petroleum refining; small-scale production of
cotton textiles and leather goods; food processing; handicrafts; small
aluminum products factory; cement
accounts for 26% of GDP; products - grain, fruits, vegetables, qat (mildly
narcotic shrub), coffee, cotton, dairy, poultry, meat, fish; not
self-sufficient in grain
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
Yemeni rial (new currency); 1 North Yemeni riyal (YR) = 100 fils; 1 South
Yemeni dinar (YD) = 1,000 fils
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
Yemeni rials per US$1 - 12.0 (official); 90 (market rate, December 1994)
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