Publication: Yemen Economic Monitor, Spring 2025: Persistent Fragility amid Rising Risks
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2025-06-04
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2025-06-04
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The Yemen Economic Monitor provides an update on key economic developments and policies over the past six months. It also presents findings from recent World Bank work on Yemen. While domestic tensions persist, with the Houthi movement continuing to blockade the Internationally Recognized Government (IRG) oil exports, Yemen also faces growing external risks. Ceasefire agreements in the Middle East in January 2025 had raised hopes for greater regional stability. However, renewed military tensions in the Red Sea since mid-March have undermined this fragile progress. In parallel, the U.S. designation of the Houthi movement as a Foreign Terrorist Organization (FTO) has introduced new compliance requirements, which are already affecting Yemen’s banking sector. Meanwhile, growing concerns over the detentions of humanitarian staff by the Houthi movement have led several donors to scale back or redirect assistance. These shifts risk deepening Yemen’s already severe economic and social challenges. Two-thirds of the population have inadequate food consumption, and poverty is widespread. Against this backdrop, the outlook remains bleak. Yemen’s future hinges on its ability to secure lasting peace, rebuild, and implement critical reforms to strengthen state institutions and restore both domestic and international business confidence—essential for attracting investment and fostering growth.
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“World Bank. 2025. Yemen Economic Monitor, Spring 2025: Persistent Fragility amid Rising Risks. © World Bank. http://hdl.handle.net/10986/43296 License: CC BY 3.0 IGO.”
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