Economic Recovery Opportunities

The Ministry of Planning and International Cooperation, in collaboration with UNICEF, has released a new edition of its Economic and Social Updates in Yemen, highlighting efforts to enhance economic growth and create jobs to reduce poverty. The edition notes that significant challenges continue to hinder economic growth and comprehensive recovery. Real GDP contracted by approximately 43% between 2015 and 2024, following a contraction of around 50% during the period 2011–2021, reflecting the depth of the economic crisis and its ongoing cumulative effects. Per capita income also declined to $471 in 2024, compared to $1,430 in 2014, with cumulative losses estimated at approximately $126 billion since 2015. In the labor market, the youth unemployment rate reached 32.4%, exceeding both the global average (13.6%) and the Arab average (25.9%), reflecting the economy's limited capacity to generate employment opportunities. Yemen's ranking in the Human Development Index has also declined to 184th out of 193 countries, with continued deterioration in education, health, and living standards. On the humanitarian front, the number of people in need of assistance rose to approximately 23.1 million in 2026, amidst a severe funding gap that covered only 28% of needs in 2025. Furthermore, 50.3% of Yemeni households suffer from multidimensional poverty, with even greater disparities in rural areas. The report emphasized the strong correlation between declining economic growth and rising poverty and unemployment rates, warning of long-term repercussions for human capital and recovery prospects. The report called for the adoption of an urgent policy package, including: supporting a comprehensive and sustainable peace process and ending the coup; stimulating economic growth; strengthening labor-intensive sectors; improving the business environment; increasing investment in infrastructure and human capital; expanding youth employment and vocational training programs; and gradually transitioning from humanitarian response to economic recovery and sustainable development. This release emphasizes the importance of adopting an integrated approach that links peace, economic growth and job creation as a key path to reducing multidimensional poverty and achieving sustainable recovery in Yemen.

Link to the English version :

https://drive.google.com/file/d/1eoE-h3upIVoVP9kf1lMfTOu-SCIAhrVH/view?usp=drive_link