World Bank2014-04-072014-04-072005-04https://hdl.handle.net/10986/17686Decelerating 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.en-USCC BY 3.0 IGOADVERSE EFFECTSADVERSE IMPACTAGRICULTUREBALANCE OF PAYMENTSBANK OFFICEBORROWINGBORROWING STRATEGYBROAD MONEYBUDGET DEFICITBUSINESS ACTIVITYBUSINESS COMMUNITYCANCERCAPITAL GOODSCASH TRANSFERCENTRAL BANKCOMPETITIVENESSCOMPLEX TASKCONSUMER PRICE INDEXCORRUPTIONCPICREDITORSCURRENT ACCOUNTCURRENT ACCOUNT BALANCECURRENT ACCOUNT SURPLUSESDAMAGESDEBTDEBT OUTSTANDINGDEBT SERVICEDEBT SERVICE RATIODEBT STOCKDEPOSITSDEVELOPMENT CAPITALDISBURSEMENTSDOMESTIC PRICESECONOMIC DEVELOPMENTECONOMIC GROWTHECONOMIC OPPORTUNITIESEDUCATION DEVELOPMENTEMPLOYERENFORCEMENT POWERSENROLLMENTENROLLMENTSEXCHANGE RATEEXPENDITUREEXPENDITURESEXPORT MARKETSEXPORTERSEXPORTSEXTERNAL DEBTFAMILIESFINANCIAL MANAGEMENTFINANCIAL MARKETSFINANCIAL SECTORFINANCIAL SUPPORTFINANCIAL SYSTEMFINANCING ARRANGEMENTFISCAL DEFICITFISCAL POLICYFISCAL REFORMSFISHERIESFISHINGFOOD PRICESFOREIGN CURRENCIESFOREIGN CURRENCYFOREIGN DIRECT INVESTMENTFOREIGN EXCHANGEFOREIGN EXCHANGE RESERVESGDPGDP DEFLATORGDP PER CAPITAGENDERGENDER EQUALITYGENDER GAPGOVERNMENT BUDGETGOVERNMENT FINANCEGOVERNMENT POLICYGROSS NATIONAL SAVINGSHOLDINGSHUMAN CAPITALHUMAN RESOURCESILLITERACYIMPORT DUTIESINCOMEINCOME GROUPINDEBTED COUNTRIESINDEBTED COUNTRYINDEBTEDNESSINFLATIONINSTITUTIONAL ENVIRONMENTINTEREST PAYMENTSINVESTMENT CLIMATEINVESTMENT REGULATIONSJOB CREATIONLABOR FORCELABOR MARKETLIFE EXPECTANCYMACROECONOMIC MANAGEMENTMARKET PRICEMICROFINANCEMONETARY POLICYNATIONAL SAVINGSNEW BUSINESSOILOIL PRICEOIL PRICESOIL SECTORPENSIONPENSION FUNDPOLICY ENVIRONMENTPORTFOLIOPRESENT VALUEPRINCIPAL REPAYMENTSPRIVATE CONSUMPTIONPRIVATE CREDITORSPRIVATE INVESTMENTPROFITABILITYPROPERTY RIGHTSREAL GDPREGULATORY ENVIRONMENTREMITTANCERESOURCE USESAFETY NETSECURITIESSHORT TERM DEBTSOCIAL FUNDSOCIAL PROTECTIONSOCIAL SAFETY NETSOCIAL WELFARESOURCE OF INCOMESTRUCTURAL ADJUSTMENTSWAPTAXTAX REVENUESTAX STRUCTURETECHNICAL ASSISTANCETERMS OF TRADETOTAL DEBTTRADE POLICYTRANSPARENCYTRANSPORTATION SERVICESUNDERDEVELOPED FINANCIAL SYSTEMWAGES10.1596/17686