Economy - overview:
Yemen is a low-income country that faces difficult long-term challenges to stabilizing and growing its economy, and the current conflict has only exacerbated those issues. The ongoing war has halted Yemen’s exports, pressured the currency’s exchange rate, accelerated inflation, severely limited food and fuel imports, and caused widespread damage to infrastructure. The conflict has also created a severe humanitarian crisis - the world’s largest cholera outbreak currently at nearly 1 million cases, more than 7 million people at risk of famine, and more than 80% of the population in need of humanitarian assistance.

Prior to the start of the conflict in 2014, Yemen was highly dependent on declining oil and gas resources for revenue. Oil and gas earnings accounted for roughly 25% of GDP and 65% of government revenue. The Yemeni Government regularly faced annual budget shortfalls and tried to diversify the Yemeni economy through a reform program designed to bolster non-oil sectors of the economy and foreign investment. In July 2014, the government continued reform efforts by eliminating some fuel subsidies and in August 2014, the IMF approved a three-year, $570 million Extended Credit Facility for Yemen.

However, the conflict that began in 2014 stalled these reform efforts and ongoing fighting continues to accelerate the country’s economic decline. In September 2016, President HADI announced the move of the main branch of Central Bank of Yemen from Sanaa to Aden where his government could exert greater control over the central bank’s dwindling resources. Regardless of which group controls the main branch, the central bank system is struggling to function. Yemen’s Central Bank’s foreign reserves, which stood at roughly $5.2 billion prior to the conflict, have declined to negligible amounts. The Central Bank can no longer fully support imports of critical goods or the country’s exchange rate. The country also is facing a growing liquidity crisis and rising inflation. The private sector is hemorrhaging, with almost all businesses making substantial layoffs. Access to food and other critical commodities such as medical equipment is limited across the country due to security issues on the ground. The Social Welfare Fund, a cash transfer program for Yemen’s neediest, is no longer operational and has not made any disbursements since late 2014.

Yemen will require significant international assistance during and after the protracted conflict to stabilize its economy. Long-term challenges include a high population growth rate, high unemployment, declining water resources, and severe food scarcity.

GDP (purchasing power parity):
$73.63 billion (2017 est.)
$78.28 billion (2016 est.)
$90.63 billion (2015 est.)
note: data are in 2017 dollars
country comparison to the world (CIA rank, may be based on non-current data): 98
[see also: GDP country ranks ]

GDP (official exchange rate):
$31.27 billion (2017 est.)
[see also: GDP (official exchange rate) country ranks ]

GDP - real growth rate:
-5.9% (2017 est.)
-13.6% (2016 est.)
-16.7% (2015 est.)
country comparison to the world (CIA rank, may be based on non-current data): 219
[see also: GDP - real growth rate country ranks ]

GDP - per capita (PPP):
$2,500 (2017 est.)
$2,700 (2016 est.)
$3,200 (2015 est.)
note: data are in 2017 dollars
country comparison to the world (CIA rank, may be based on non-current data): 199
[see also: GDP - per capita country ranks ]

Gross national saving:
-1.9% of GDP (2017 est.)
-3.7% of GDP (2016 est.)
-4.5% of GDP (2015 est.)
country comparison to the world (CIA rank, may be based on non-current data): 182
[see also: Gross national saving country ranks ]

GDP - composition, by end use:
household consumption: 116.6% (2017 est.)
[see also: GDP - composition, by end use - household consumption country ranks ]
government consumption: 17.6% (2017 est.)
[see also: GDP - composition, by end use - government consumption country ranks ]
investment in fixed capital: 2.2% (2017 est.)
[see also: GDP - composition, by end use - investment in fixed capital country ranks ]
investment in inventories: 0% (2017 est.)
[see also: GDP - composition, by end use - investment in inventories country ranks ]
exports of goods and services: 7.5% (2017 est.)
[see also: GDP - composition, by end use - exports of goods and services country ranks ]
imports of goods and services: -43.9% (2017 est.)
[see also: GDP - composition, by end use - imports of goods and services country ranks ]

GDP - composition, by sector of origin:
agriculture: 20.3% (2017 est.)
[see also: GDP - composition, by sector of origin - agriculture country ranks ]
industry: 11.8% (2017 est.)
[see also: GDP - composition, by sector of origin - industry country ranks ]
services: 67.9% (2017 est.)
[see also: GDP - composition, by sector of origin - services country ranks ]

Agriculture - products:
grain, fruits, vegetables, pulses, qat, coffee, cotton; dairy products, livestock (sheep, goats, cattle, camels), poultry; fish

Industries:
crude oil production and petroleum refining; small-scale production of cotton textiles, leather goods; food processing; handicrafts; aluminum products; cement; commercial ship repair; natural gas production

Industrial production growth rate:
8.9% (2017 est.)
country comparison to the world (CIA rank, may be based on non-current data): 21
[see also: Industrial production growth rate country ranks ]

Labor force:
7.425 million (2017 est.)
country comparison to the world (CIA rank, may be based on non-current data): 65
[see also: Labor force country ranks ]

Labor force - by occupation:
note: most people are employed in agriculture and herding; services, construction, industry, and commerce account for less than one-fourth of the labor force

Unemployment rate:
27% (2014 est.)
35% (2003 est.)
country comparison to the world (CIA rank, may be based on non-current data): 198
[see also: Unemployment rate country ranks ]

Population below poverty line:
54% (2014 est.)
[see also: Population below poverty line country ranks ]

Household income or consumption by percentage share:
lowest 10%: 2.6%
[see also: Household income or consumption by percentage share - lowest 10% country ranks ]
highest 10%: 30.3% (2008 est.)
[see also: Household income or consumption by percentage share - highest 10% country ranks ]

Distribution of family income - Gini index:
37.9 (2009 est.)
37.3 (1999 est.)
country comparison to the world (CIA rank, may be based on non-current data): 81
[see also: Distribution of family income - Gini index country ranks ]

Budget:
revenues: 2.821 billion (2017 est.)
[see also: Budget - revenues country ranks ]
expenditures: 4.458 billion (2017 est.)
[see also: Budget - expenditures country ranks ]

Taxes and other revenues:
9% (of GDP) (2017 est.)
country comparison to the world (CIA rank, may be based on non-current data): 216
[see also: Taxes and other revenues country ranks ]

Budget surplus (+) or deficit (-):
-5.2% (of GDP) (2017 est.)
country comparison to the world (CIA rank, may be based on non-current data): 171
[see also: Budget surplus (+) or deficit (-) country ranks ]

Public debt:
74.5% of GDP (2017 est.)
68.1% of GDP (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 41
[see also: Public debt country ranks ]

Fiscal year:
calendar year

Inflation rate (consumer prices):
24.7% (2017 est.)
-12.6% (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 218
[see also: Inflation rate (consumer prices) country ranks ]

Central bank discount rate:
NA
[see also: Central bank discount rate country ranks ]

Commercial bank prime lending rate:
30% (31 December 2017 est.)
27% (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 6
[see also: Commercial bank prime lending rate country ranks ]

Stock of narrow money:
$4.736 billion (31 December 2017 est.)
$6.718 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 108
[see also: Stock of narrow money country ranks ]

Stock of broad money:
$4.736 billion (31 December 2017 est.)
$6.718 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 112
[see also: Stock of broad money country ranks ]

Stock of domestic credit:
$2.326 billion (31 December 2017 est.)
$4.515 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 146
[see also: Stock of domestic credit country ranks ]

Market value of publicly traded shares:
NA
[see also: Market value of publicly traded shares country ranks ]

Current account balance:
-$1.236 billion (2017 est.)
-$1.868 billion (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 149
[see also: Current account balance country ranks ]

Exports:
$384.5 million (2017 est.)
$940 million (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 183
[see also: Exports country ranks ]

Exports - partners:
Egypt 29.4%, Thailand 16.7%, Belarus 13.5%, Oman 10.5%, UAE 6.5%, Saudi Arabia 5% (2017)

Exports - commodities:
crude oil, coffee, dried and salted fish, liquefied natural gas

Imports:
$4.079 billion (2017 est.)
$3.117 billion (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 139
[see also: Imports country ranks ]

Imports - commodities:
food and live animals, machinery and equipment, chemicals

Imports - partners:
UAE 12.2%, China 12.1%, Turkey 8.7%, Brazil 7.3%, Saudi Arabia 6.5%, Argentina 5.5%, India 4.7% (2017)

Reserves of foreign exchange and gold:
$245.4 million (31 December 2017 est.)
$592.6 million (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 170
[see also: Reserves of foreign exchange and gold country ranks ]

Debt - external:
$7.068 billion (31 December 2017 est.)
$7.181 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 124
[see also: Debt - external country ranks ]

Stock of direct foreign investment - at home:
NA
[see also: Stock of direct foreign investment - at home country ranks ]

Exchange rates:
Yemeni rials (YER) per US dollar -
275 (2017 est.)
214.9 (2016 est.)
214.9 (2015 est.)
228 (2014 est.)
214.89 (2013 est.)