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Yemen's Economy Suffers $126 Billion in Losses Amid Decade-Long Houthi War
🇸🇦 Saudi Arabia /Economy & Trade

Yemen's Economy Suffers $126 Billion in Losses Amid Decade-Long Houthi War

From Asharq Al-Awsat · (4m ago) English Critical tone

Translated from English, summarized and contextualized by DistantNews.

TLDR

  • Yemen's economy has suffered cumulative losses of approximately $126 billion due to the Houthi war by 2021, with poverty and unemployment rising significantly.
  • Real GDP has shrunk by 43% between 2015 and 2024, and per capita GDP has fallen sharply, impacting living standards and the ability to secure basic needs.
  • Youth unemployment is over 32%, human capital is eroding, and Yemen's global ranking on the Human Development Index has declined substantially.

The ongoing conflict ignited by the Houthis has inflicted devastating economic and humanitarian consequences on Yemen, with government data revealing staggering cumulative losses estimated at $126 billion by 2021. This prolonged war has exacerbated poverty and unemployment, pushing the nation's economy into a severe contraction.

the conflict ignited by the Houthis caused cumulative losses to the national economy estimated at about $126 billion by 2021.

— Yemeni government dataStating the total economic damage caused by the war.

The Yemeni Ministry of Planning and International Cooperation's figures paint a grim picture: real GDP has plummeted by 43% between 2015 and 2024, and per capita GDP has dramatically decreased to $471 in 2024 from $1,430 in 2014. These statistics underscore the catastrophic impact on citizens' purchasing power and daily lives, particularly as Houthi attacks on oil export ports have crippled the country's primary source of foreign currency, further straining public finances and essential services.

Yemen’s economy continued to contract under the weight of the war and its impact across productive and service sectors, amid stalled oil exports, weaker trade activity and growing pressure on the local currency.

— Ministry of Planning and International CooperationExplaining the ongoing economic decline.

The labor market faces a crisis, with youth unemployment soaring to 32.4%, far exceeding global and Arab averages. This highlights a critical disconnect between education and employment needs, compounded by the weakened economy's inability to create jobs. The erosion of human capital and the expansion of economic and social fragility, especially among the youth, are critical concerns.

real gross domestic product shrank by 43% between 2015 and 2024.

— Ministry of Planning and International CooperationQuantifying the reduction in the country's economic output.

Yemen's global standing has also suffered immensely, with its Human Development Index score dropping significantly, ranking 184th out of 193 countries. This decline reflects the severe deterioration in education, health, and income indicators, painting a stark reality of the humanitarian crisis unfolding in the country.

per capita GDP fell to just $471 in 2024, compared with $1,430 in 2014, a sharp decline that reveals the scale of the collapse in purchasing power and individual income levels during the war years.

— Yemeni dataIllustrating the severe drop in individual income and purchasing power.
DistantNews Editorial

Originally published by Asharq Al-Awsat in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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