Publication: Yemen : Economic Monitoring Report
Date
2005-04
ISSN
Published
2005-04
Author(s)
World Bank
Abstract
Decelerating Gross Domestic Product, or
GDP growth widening primary non-oil fiscal deficit
persisting double digit inflation and rapidly dwindling
current account surpluses characterize the weaknesses in the
Yemeni economy. Decline in oil production is proving to be
an important turning point in Yemen s economic development.
With the annual growth of GDP projected around percent for
the second year in a row Yemen s per capita GDP is set to
decline again in 2005. Underlying primary non-oil fiscal
deficit continued to widen to 27 percent of GDP in 2004,
reflecting the poor resource mobilization efforts. Inflation
has persisted near 12 percent annual rate in the last two
years and the inevitable revisions to petroleum prices and
introduction of general sales tax will call for tighter
monetary management to contain inflation in 2005. The
buffer of foreign exchange reserves that the government has
built to US $ 5 billion from high oil prices by end 2004
(some months of imports equivalent), could only provide a
temporary cushion against erosion of current account balance.
Link to Data Set
Citation
“World Bank. 2005. Yemen : Economic Monitoring Report. © Washington, DC. http://hdl.handle.net/10986/17686 License: CC BY 3.0 IGO.”