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Apr - 21 - 2025 Download The Version
Yemen's economy is going through a critical phase marked by growing challenges, where political and economic factors intertwine to paint a bleak picture of the country's financial, monetary, and commercial conditions. These hardships have a direct impact on the lives of millions of Yemenis who have endured the flames of war for over a decade. Despite the relative calm of a “no war, no peace” status throughout 2024, the country experienced significant economic upheavals and major transformations. Chief among them was the severe depreciation of Yemen’s national currency against the US dollar and other foreign currencies, with the exchange rate exceeding 2,000 Yemeni rials per one U.S. dollar. This was accompanied by intensified U.S. sanctions on the Houthi group and affiliated entities, along with growing economic fragmentation and an escalating conflict—particularly in the banking sector. Additionally, violations and extortion practices against the Yemeni private sector continued across all regions of the country, most notably the direct control and takeover of certain companies and institutions by the Houthi group. This 2024 Annual Economic Report, issued by the SEMC’s Economic Surveillance & Research Unit, focuses on the most significant economic developments in Yemen during 2024. It places special emphasis on the impact of increasing U.S. sanctions on the Houthi group and associated entities, and their effects on the national economy, the banking and financial sectors, as well as the intensifying conflict within the internationally recognized government's power structure. The report also highlights developments in fiscal and monetary policies, along with the efforts and challenges facing the private sector in Yemen. Moreover, the Report addresses the volume of international humanitarian funding for Yemen in 2024 and the efforts of donors and international relief organizations in this regard. It also reviews the initiatives of the Yemeni government in Aden, including its plans to implement economic reforms announced during 2024, as well as the obstacles and challenges it faces. The Report concludes that continued economic sanctions, monetary fragmentation, and regional tensions will likely lead to further economic deterioration in 2025 unless bold reforms are adopted to restore national stability. These reforms must be comprehensive and aim to achieve financial and banking stability within an integrated framework of institutional and administrative reforms rooted in governance, transparency, and accountability.
Yemen's economy is going through a critical phase marked by growing challenges, where political and economic factors intertwine to paint a bleak picture of the country's financial, monetary, and commercial conditions. These hardships have a direct impact on the lives of millions of Yemenis who have endured the flames of war for over a decade.
Despite the relative calm of a “no war, no peace” status throughout 2024, the country experienced significant economic upheavals and major transformations. Chief among them was the severe depreciation of Yemen’s national currency against the US dollar and other foreign currencies, with the exchange rate exceeding 2,000 Yemeni rials per one U.S. dollar. This was accompanied by intensified U.S. sanctions on the Houthi group and affiliated entities, along with growing economic fragmentation and an escalating conflict—particularly in the banking sector.
Additionally, violations and extortion practices against the Yemeni private sector continued across all regions of the country, most notably the direct control and takeover of certain companies and institutions by the Houthi group.
This 2024 Annual Economic Report, issued by the SEMC’s Economic Surveillance & Research Unit, focuses on the most significant economic developments in Yemen during 2024. It places special emphasis on the impact of increasing U.S. sanctions on the Houthi group and associated entities, and their effects on the national economy, the banking and financial sectors, as well as the intensifying conflict within the internationally recognized government's power structure. The report also highlights developments in fiscal and monetary policies, along with the efforts and challenges facing the private sector in Yemen.
Moreover, the Report addresses the volume of international humanitarian funding for Yemen in 2024 and the efforts of donors and international relief organizations in this regard. It also reviews the initiatives of the Yemeni government in Aden, including its plans to implement economic reforms announced during 2024, as well as the obstacles and challenges it faces.
The Report concludes that continued economic sanctions, monetary fragmentation, and regional tensions will likely lead to further economic deterioration in 2025 unless bold reforms are adopted to restore national stability. These reforms must be comprehensive and aim to achieve financial and banking stability within an integrated framework of institutional and administrative reforms rooted in governance, transparency, and accountability.