Yemen's economy will decline to 2% in 2021
English - Monday 11 October 2021 الساعة 05:32 pm
Aden, NewsYemen, Exclusive:
The World Bank expected the Yemeni economy to decline by 2% in 2021, driven by the absence of external financing, and the continuation of the Corona pandemic.
The World Bank, in its Economic Update for Yemen - October 2021, said that preliminary estimates indicate that the economy has contracted by 8.5% in 2020.
The report attributed the significant shortage of foreign exchange in 2021 to the slow recovery in oil production and the ability to export, and the decline in funding and humanitarian operations.
The report pointed out that as the conflict continues, the value of the Yemeni riyal continues to decline to new historical levels, and significant increases in food prices have pushed more people into extreme poverty.
The report stated that the escalation of violence and fragmentation of macroeconomic policies add more pressures on the fragile economic conditions.
He expected inflation to accelerate this year, to an estimated 45 percent, compared to 35 percent in 2020.
According to the World Bank report, non-oil economic activity was affected by the coronavirus-induced slowdown in trade, dual tax systems in the North and South, scarcity of inputs, and high commodity prices.
