Economy of Yemen

Yemen is a low income country that is highly dependent on declining oil resources for revenue. Petroleum accounts for roughly 25% of GDP and 70% of government revenue. Yemen has tried to counter the effects of its declining oil resources by diversifying its economy through an economic reform program initiated in 2006 that is designed to bolster non-oil sectors of the economy and foreign investment. During the last ten years gross domestic product (GDP) grew at an average rate of 4 per cent. In 2000 GDP was estimated at $9.7 billion, it increased to $16.7 billion in 2005 and to $25.1 billion in 2009 according to International Monetary Fund (IMF) estimations. GDP for 2010 was estimated at $30 billion.

Since the oil discovery, it can be seen important changes in the economic structure according to IMF data of GDP by kind of economic activity (1970-2009). The contribution of mining and industrial sector in the GDP, mainly because of oil production, had increased highly at the expense of the agriculture sector. While agricultural sector contribution were about 30% in the GDP compared to about 10% for mining and industrial sectors, in 2008 this percentage was less than 10% compared to more than 40% of GDP for mining and industrial sectors.

In October 2009, Yemen exported its first liquefied natural gas as part of this diversification effort. In January 2010, the international community established the Friends of Yemen group that aims to support Yemen's efforts towards economic and political reform, and in August 2010 the IMF approved a three-year $370 million program to further this effort.

Yemen's national economy is almost paralyzed after the anti-regime protests severely affected key economic sectors. In less than a year, Yemen which was enjoying a steady growth rate and a development in all sectors of the industries is now facing a mounting deficit, an industrial crisis of momentous proportion, a serious cash flow problems as well as a banking crisis.

After shrinking by 12.7 percent in 2011 when political unrest crippled the economy, the IMF was predicting 4.8 percent expansion in 2013. The nominal gross domestic product was estimated at $32.2bn in 2012. The IMF estimates GDP to shrink more by -2.2% in 2014 before growing by 3.6% in 2015.

Essential Information

Area: 536,869 sq km
Population: 25,408,288 (2012 est.)
Capital: Sanaa
Principal Towns: Aden, Taiz, Hodeida.
Languages: Arabic is the official language, but English is widely used in business.
Gross Domestic Product: $ 3 6.4 billion (20 1 2 est.)
GDP per capita: $1433
International Reserves: $6.7 billion (2012 est.)
Climate: Yemen has two distinctive climatic areas; the Highlands, with an agreeable summer climate and frost, or even snow, in winter and the hot Coastal plain with sandstorms.
Currency: 1$ ≈ 214.975 Yemeni Rial (YER)
 
DEMOGRAPHY
Age Distribution (2012 est.)
0-14 years: 42%
15-24 years: 21.1%
25-54 years: 30.6%
55-64 years: 3.7%
65 years and over: 2.6%
 
Population Growth: 2.575% (2012 est.)
Education: 63.9% of the total population age 15 and over can read and write (2010 est.).
 
Among the most compelling challenges that Yemen faces today is the rapid rate of population growth. Since 1975, Yemen’s population has grown by two and a half times reaching its current level of 23 million. The population is unevenly distributed over 19 governorates plus the capital city of Sana’a. Also, a fast growing urban population, growing at almost double the population growth rate, points to a high rate of internal migration – which leads to stress on the infrastructures of urban centres and the evacuation and neglect of rural areas.
 
NATURAL RESOURCES
Fossil Fuel
Petroleum
Minerals
Rock salt, marble, small deposits of coal, gold, lead, nickel, and copper.

Visa Requirements:

All arriving non-Yemeni visitors require visas which can be obtained from all embassies and consulates in the Arab world, except Morocco. The principle offices are; UK - London, France - Paris, Germany - Berlin, Switzerland - Geneva, Russia - Moscow, Czech Republic - Prague and the USA - New York and Washington. A visitor with the necessary visa wishing to stay for more than 15 days must register at the immigration office in Sanaa, Taiz or Hodeida and obtain an exit visa. Emergency visas can usually be obtained by bona fide travellers, at the airport, for some YR 10.

  Independence Day, 30 november. Unification Day, 22 May

 Current local time Weather

Diplomatic representation of Yemen in Switzerland