The hardships of the Yemenis are enormous.. The World Bank: The peace agreement is not a magic solution for the recovery of the economy
English - Saturday 03 June 2023 الساعة 04:31 pm
Aden, NewsYemen:
A recent report issued by the World Bank confirmed that reaching a peace agreement in Yemen represents a glimmer of hope for recovery over the next few years, but at the same time it will not be a magic solution for the recovery of the fragile and shattered economy due to the ongoing conflict.
This came during a report issued by the Bank during the past few days, titled "The Country Economic Note on Yemen: A Glimpse of Hope in Dark Times."
The bank indicated that if a permanent peace agreement is reached in Yemen, this may be a sign of great (peace dividends) for its people, represented in an increase in growth of up to 6 percentage points, which will lead to a cumulative increase in real GDP by a third over the course of the year. The next five years compared to the current situation. He stressed that the expected increase in growth will be accompanied by a significant growth in the volume of public and private investments, employment rates, and productivity, as well as a decrease in poverty rates.
He pointed out that the recovery of the fragile and shattered Yemeni economy due to the ongoing conflict and the multiplying shocks of the Corona virus pandemic and the rise in global prices requires the combination of many factors, including an increase in donor aid, the reopening of the main transport routes in the country, the presence of a private sector that is able to withstand and continue, and improving integration into regional trade markets. And internationalism are all necessary factors in order to accelerate the reconstruction and comprehensive recovery efforts in the country.
The report added: "It is true that working in situations of fragility, conflict and violence has its complex challenges, and Yemen is no exception in this regard. However, there are possibilities for achieving long-term growth in the country, and special attention must be paid to the challenges it faces and the opportunities available to achieve the desired recovery and growth."
The report quoted a statement by the World Bank's Country Director in Yemen, Tanya Meyer, in which she said: "While there is cautious optimism about economic recovery, we must remain clear on the facts on the ground, because the hardships faced by Yemenis are enormous."
"High inflation, low quality jobs, and public sector instability remain significant obstacles," she added. Emphasizing that "peace is an imperative for achieving inclusive growth, promoting sustainable development and, above all, improving living conditions."
