World Bank: Agriculture dominates the Yemeni economy

English - الخميس 19 مايو 2022 الساعة 11:26 ص
Aden, NewsYemen, special:

The World Bank stressed that agriculture dominates the real economy - after the collapse of the oil sector - but it is suffering from increasing tension from climate-related disruptions and pests.

In its latest update, "Yemen: Macroeconomic and Poverty Prospects Index April 2022", the World Bank said that the available information indicates that the Yemeni economy continued to contract in 2021, affected by macroeconomic instability.

"Oil production has remained well below pre-conflict levels, despite slight improvements in recent years," he added.

He pointed out that economic activity continued to suffer from hostilities, the suspension of basic services "electricity and communications" and the shortage of inputs, which was exacerbated by double taxation and distortions caused by inconsistent policy decisions by the two authorities.

He explained that there is no reliable information about the economy being issued, as official statistics are no longer issued, and the Yemeni economy is largely informal and relies on remittances and aid flows to finance consumption.

He said that the social conditions are precarious, as the United Nations estimates that more than 24 million people, about 80% of the population, need humanitarian assistance.

He pointed out that the escalating hostilities have damaged shelters and infrastructure, destroyed livelihoods, and facilitated the spread of cholera diseases, and with only 50% of health facilities operating in Yemen, the Corona pandemic has imposed additional pressures on the country's fragile health system.