Yaman, Rep.

Yemen Economic Profile

Yemen is a low-income country located in the southwest of the Arabian Peninsula, with a nominal GDP of approximately $40.5 billion in 2023. While positioned geographically important between the Arabian Gulf and the Indian Ocean, it faces severe economic challenges. The primary industry is oil and natural gas, which once served as the pillar of the economy but no longer functions as a reliable revenue source due to declining production in recent years. Agriculture employs approximately 25% of the population, with grain production and livestock raising being important, though productivity remains low. Fishery resources are abundant but remain underdeveloped.

Since 2014, Yemen has been in a state of civil war, with its economy experiencing devastating impacts. The destruction of basic infrastructure, cessation of commercial activities, and deepening humanitarian crises have resulted in continuous negative GDP growth rates. The Riyal currency has depreciated significantly, and inflation rates are rising rapidly. Unemployment is high, with particularly limited employment opportunities for youth. With the loss of state institution functions, government revenues have declined extremely, making the provision of public services difficult.

Notably, political stability is essential for Yemen's economic recovery. Without international support and conflict resolution, economic regeneration remains unlikely. Additionally, given the importance of international trade passing through the Bab el-Mandeb Strait, improvements in the regional situation could have implications for the global economy. Alleviating the humanitarian crisis and achieving sustainable economic development require long-term international support and regional cooperation.