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 promising oil resources. South Yemen's willingness to merge stemmed partly from the steady decline in Soviet economic support. North--The low level of domestic industry and agriculture have made northern Yemen dependent on imports for virtually all of its essential needs. Large trade deficits have been made up for by remittances from Yemenis working abroad and foreign aid. Once self-sufficient in food production, northern Yemen has been a major importer. Land once used for export crops--cotton, fruit, and vegetables--has been turned over to growing qat, a mildly narcotic shrub chewed by Yemenis that has no significant export market. Oil export revenues started flowing in late 1987 and boosted 1988 earnings by about $800 million. South--This has been one of the poorest Arab countries, with a per capita GNP of about $500. A shortage of natural resources, a widely dispersed population, and an arid climate have made economic development difficult. The economy has grown at an average annual rate of only 2-3% since the mid-1970s. The economy had been organized along socialist lines, dominated by the public sector. Economic growth has been constrained by a lack of incentives, partly stemming from centralized control over production decisions, investment allocation, and import choices.

GDP: $5.3 billion, per capita $545; real growth rate NA% (1990 est.)

Inflation rate (consumer prices): North--16.9% (1988); South--0% (1989)

Unemployment rate: North--13% (1986); South--NA%

Budget: North--revenues $1.4 billion; expenditures $2.2 billion, including capital expenditures of $590 million (1988 est.); South--revenues and grants $435 million; expenditures $1.0 billion, including capital expenditure of $460 million (1988 est.)

Exports: North--$606 million (f.o.b., 1989); commodities--crude oil, cotton, coffee, hides, vegetables; partners--FRG 29%, US 26%, Netherlands 12%; South--$113.8 million (f.o.b., 1989 est.); commodities--cotton, hides, skins, dried and salted fish; partners--Japan, North Yemen, Italy

Imports: North--$1.3 billion (f.o.b., 1988); commodities--textiles and other manufactured consumer goods, petroleum products, sugar, grain, flour, other foodstuffs, and cement; partners--Saudi Arabia 12%, France 6%, US 5%, Australia 5% (1985); South--$553.9 million (f.o.b., 1989 est.); commodities--grain, consumer goods, crude oil, machinery, chemicals; partners--USSR, UK, Ethiopia

External debt: $5.75 billion (December 1989 est.)

Industrial production: North--growth rate 2% in manufacturing (1988); South--growth rate NA% in manufacturing

Electricity: 670,000 kW capacity; 1,100 million kWh produced, 110 kWh per capita (1990)

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

Agriculture: North--accounted for 26% of GDP and 70% of labor force; farm products--grain, fruits, vegetables, qat (mildly narcotic shrub), coffee, cotton, dairy, poultry, meat, goat meat; not self-sufficient in grain; South--accounted for 17% of GNP and 45% of labor force; products--grain, qat (mildly narcotic shrub), coffee, fish, livestock; fish and honey major exports; most food imported

Economic aid: US commitments, including Ex-Im (FY70-89), $389 million; Western (non-US) countries, ODA and OOF bilateral commitments (1970-88), $1.9 billion; OPEC bilateral aid (1979-89), $3.2 billion; Communist countries (1970-89), $2.4 billion

Currency: North Yemeni riyal (plural--riyals); 1 North Yemeni riyal (YR) = 100 fils; South Yemeni dinar (plural--dinars); 1 South Yemeni dinar (YD) = 1,000 fils

Exchange rates: North Yemeni riyals (YR) per US$1--9.7600 (January 1990), 9.7600 (1989), 9.7717 (1988), 10.3417 (1987), 9.6392 (1986), 7.3633 (1985); South Yemeni dinars (YD) per US$1--0.3454 (fixed rate)

Fiscal year: calendar year

NOTE: The information regarding Yemen on this page is re-published from the 1991 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Yemen Economy 1991 information contained here. All suggestions for corrections of any errors about Yemen Economy 1991 should be addressed to the CIA.