The Structure of the Yemeni Economy (1990-2008)

Abstract

Literature concerning the Yemeni economy is rarely presented. The current turmoil and calls for changing the regime are delivered over media and complaints of economic weaknesses, corruption and diminishing per capita income promote such efforts. In the present paper, I introduce real data about the Yemeni economy and draw its structure and growth for the years 1990-2008. The general features reveal that even though with the structural adjustment policies applied to rectify the Yemeni economy, there were continuous increases in inflation rates throughout the examined period. Oil revenues did not help to improve the balance of payments neither the persistent budget deficits. That amplified the chronic external debt crisis. The evident characteristic of Yemeni economy is the total dependence on oil export with its fluctuating international prices and the lack of supportive non-oil products. The latter diminished in their sharing in the gross national production. Thus, the Yemeni economy was dependable on importing more food which resulted in less consumption purchasing power for its population that stood to endure global increases in food prices. It is not surprising that the primary calls for the current demonstrations, calls to change the government and dethrone the 33 years governing president started with calls for social and economic benefits and elimination of corruption. More evidence is clear that there are see pages of resources through governmental ever and accounted for increasing expenditures.

Keywords: Yemen, Macroeconomics, Expenditure, Oil, Per Capita Income, Deficits