Yemen Economy 1997

Economy - overview The northern city Sanaa is the political capital of a united Yemen,and the southern city Aden, with its refinery and port facilities, is theeconomic and commercial capital. Future economic development depends heavilyon Western-assisted development of the country's moderate oil resources. FormerSouth Yemen's willingness to merge stemmed partly from the steady declinein Soviet economic support. The low level of domestic industry and agriculturehas made northern Yemen dependent on imports for practically all of its essentialneeds. Once self-sufficient in food production, northern Yemen has becomea major importer. Land once used for export crops - cotton, fruit, and vegetables- has been turned over to growing a shrub called qat, whose leaves are chewedfor their stimulant effect by Yemenis and which has no significant exportmarket. Economic growth in former South Yemen has been constrained by a lackof incentives, partly stemming from centralized control over production decisions,investment allocation, and import choices. Yemen's GDP has been supplementedby remittances from Yemenis working abroad and by foreign aid. Since the Gulfcrisis, however, remittances have dropped substantially. Floods in June 1996caused the loss of much valuable topsoil in the agricultural sector, increasingthe need for imports of foodstuffs. Oil production and GDP as a whole areexpected to increase moderately in 1997.

GDP purchasing power parity - $39.1 billion (1996 est.)

GDP - real growth rate 2.8% (1996 est.)

GDP - per capita purchasing power parity - $2,900 (1996 est.)

GDP - composition by sector
agriculture: 14%
industry: 35%
services : 51%

Inflation rate - consumer price index 85% (1996 est.)

Labor force no reliable estimates exist, most people are employed in agricultureand herding or as expatriate laborers; services, construction, industry, andcommerce account for less than one-half of the labor force

Unemployment rate 30% (1995 est.)

Budget
revenues: $3 billion
expenditures: $3.1 billion, including capital expenditures of $NA (1996 est.)

Industries crude oil production and petroleum refining; small-scale productionof cotton textiles and leather goods; food processing; handicrafts; smallaluminum products factory; cement

Industrial production growth rate NA%

Electricity - capacity 810,000 kW (1994)

Electricity - production 1.84 billion kWh (1994)

Electricity - consumption per capita 117 kWh (1995 est.)

Agriculture - products grain, fruits, vegetables, qat (mildly narcotic shrub), coffee, cotton;dairy products, poultry, meat; fish

Exports
total value: $2.5 billion (f.o.b., 1996 est.)
commodities : crude oil, cotton, coffee, hides, vegetables, dried and salted fish
partners: China 23%, South Korea 19%, Japan 12%, Singapore 10%, Brazil 9%, Thailand7% (1995)

Imports
total value: $2.2 billion (f.o.b., 1996 est.)
commodities: textiles and other manufactured consumer goods, petroleum products,sugar, grain, flour, other foodstuffs, cement, machinery, chemicals
partners: UAE 14%, Saudi Arabia 10%, US 8%, Malaysia 6%, UK 5% (1995)

Debt - external $8 billion (1996)

Economic aid
recipient : ODA, $148 million (1993)

Currency Yemeni rial (YRl) (new currency)

Exchange rates Yemeni rials (YRl) per US$1 - 50.04 (new official fixed rate), 40.839(1995), 12.010 (official fixed rate 1992-94); 490 (market rate, December 1994)
note : on 29 March 1995 the official rate was changed from 12.01 Yemeni rialsto 50.04 Yemeni rials per US dollar

Fiscal year calendar year

NOTE: The information regarding Yemen on this page is re-published from the 1997 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Yemen Economy 1997 information contained here. All suggestions for corrections of any errors about Yemen Economy 1997 should be addressed to the CIA.