The World Bank warns of a setback for Yemen's economy following the depletion of the Saudi deposit at the end of 2019
English - Saturday 12 October 2019 الساعة 09:43 am
Aden – NewsYemen.net
The World Bank has warned that Yemen's economy will lose its stability, which it gained during 2018-2019 when the Saudi deposit was exhausted by the end of 2019, and stressed the importance of mobilizing more foreign aid to support the import of sufficient basic materials and maintain macroeconomic stability.
The economic prospects of Yemen's economy in 2019 and beyond are uncertain and largely dependent on the political and security situation. Improved macroeconomic conditions are generally under renewed pressures.
If the reconciliation between the transitional council and the Hadi government succeeds, the economy could grow by 2 percent to 2.5 percent annually over the next two years, thanks to a gradual increase in hydrocarbon production, which is well below the rates needed for reconstruction or Addressing the challenges of human development.
According to data of the Central Bank of Yemen, the total withdrawals from the Saudi deposit amounted to $ 434 million between July 2018 and September 2019, the value of the deposit fell to $ 466 million, out of $ 2 billion, and the Saudi deposit came to stop the deterioration of the price of the national currency "riyal" against foreign currencies, And help Yemen stabilize prices
The coup of the Houthi militia has severely disrupted economic activity and exports of hydrocarbons, severely damaged infrastructure, and widely suspended basic public services.
The decline in oil production and exports has caused a severe shortage of foreign exchange and government revenues have fallen sharply. In addition, the fragmentation of international institutions, including the Central Bank of Yemen, to stop the supply of foreign exchange necessary for basic imports and pay public sector salaries, which fueled inflation and exacerbated the humanitarian crisis.
