Yemen Economy Profile 2010

Economy - overview

Yemen is a low income country that is highly dependent on declining oil resources for revenue. Petroleum accounts for roughly 25% of GDP and 70% of government revenue. Annual real GDP growth has averaged 3-4% since 2000. Yemen has been largely unaffected by and insulated from the effects of the global economic crisis because its financial system is underdeveloped and not well integrated into the international community, but the drop in oil prices since mid-2008 slashed government oil revenues in 2009 by more than 50%, as compared to 2008. Yemen has tried to counter the effects of its declining oil resources by diversifying its economy through an economic reform program initiated in 2006 that is designed to bolster non-oil sectors of the economy and foreign investment. In October 2009, Yemen exported its first liquefied natural gas as part of this diversification effort. The Yemen government in August reaffirmed its commitment to reforms in a plan detailing the country's top ten development priorities. Despite these ambitious plans, Yemen faces difficult long term challenges, including declining water resources and a high population growth rate.

GDP (purchasing power parity)

$58.2 billion (2009 est.)
$56.07 billion (2008 est.)
$54.33 billion (2007 est.)
note: data are in 2009 US dollars

GDP (official exchange rate)

$26.24 billion (2009 est.)

GDP - real growth rate

3.8% (2009 est.)
3.2% (2008 est.)
3.5% (2007 est.)

GDP - per capita (PPP)

$2,500 (2009 est.)
$2,500 (2008 est.)
$2,500 (2007 est.)
note: data are in 2009 US dollars

GDP - composition by sector

agriculture: 9.7%
industry: 39.3%
services: 51.1% (2009 est.)

Population below poverty line

45.2% (2003)

Labor force

6.641 million (2009 est.)

Labor force - by occupation

note: most people are employed in agriculture and herding; services, construction, industry, and commerce account for less than one-fourth of the labor force

Unemployment rate

35% (2003 est.)

Household income or consumption by percentage share

lowest 10%: 2.9%
highest 10%: 30.8% (2005)

Distribution of family income - Gini index

37.7 (2005)
33.4 (1998)

Investment (gross fixed)

19.9% of GDP (2009 est.)

Budget

revenues: $6.202 billion
expenditures: $9.355 billion (2009 est.)

Public debt

39.6% of GDP (2009 est.)
28.1% of GDP (2008 est.)

Inflation rate (consumer prices)

3.6% (2009 est.)
19% (2008 est.)

Central bank discount rate

NA%
NA%

Commercial bank prime lending rate

18% (31 December 2008)
18% (31 December 2007)

Stock of money

$3.489 billion (31 October 2009)
$3.399 billion (31 December 2008)

Stock of quasi money

$6.077 billion (31 October 2009)
$5.985 billion (31 December 2008)

Stock of domestic credit

$NA (31 December 2008)
$2.224 billion (31 December 2007)

Industries

crude oil production and petroleum refining; small-scale production of cotton textiles and leather goods; food processing; handicrafts; small aluminum products factory; cement; commercial ship repair; natural gas production

Industrial production growth rate

5.8% (2009 est.)

Electricity - production

5.665 billion kWh (2007 est.)

Electricity - production by source

fossil fuel: 100%
hydro: 0%
nuclear: 0%
other: 0% (2001)

Electricity - consumption

4.133 billion kWh (2007 est.)

Electricity - exports

0 kWh (2008 est.)

Electricity - imports

0 kWh (2008 est.)

Oil - production

300,100 bbl/day (2008 est.)

Oil - consumption

149,000 bbl/day (2008 est.)

Oil - imports

65,860 bbl/day (2007 est.)

Oil - exports

274,400 bbl/day (2007 est.)

Oil - proved reserves

3 billion bbl (1 January 2009 est.)

Natural gas - production

454,700 cu m (2009 est.)

Natural gas - consumption

0 cu m (2008 est.)

Natural gas - exports

454,700 cu m (2009 est.)

Natural gas - imports

0 cu m (2008 est.)

Natural gas - proved reserves

478.5 billion cu m (1 January 2009 est.)

Current Account Balance

-$2.627 billion (2009 est.)
-$1.251 billion (2008 est.)

Agriculture - products

grain, fruits, vegetables, pulses, qat, coffee, cotton; dairy products, livestock (sheep, goats, cattle, camels), poultry; fish

Exports

$5.55 billion (2009 est.)
$8.977 billion (2008)

Exports - commodities

crude oil, coffee, dried and salted fish, liquefied natural gas

Exports - partners

China 30.9%, Thailand 25.7%, South Africa 14.6%, India 8.8%, Japan 5.1%, UAE 4.2% (2008)

Imports

$7.12 billion (2009 est.)
$9.334 billion (2008)

Imports - commodities

food and live animals, machinery and equipment, chemicals

Imports - partners

UAE 15.5%, China 11.8%, India 8.4%, Saudi Arabia 7.3%, Kuwait 5.4%, US 4.1% (2008)

Reserves of foreign exchange and gold

$6.307 billion (31 December 2009 est.)
$8.157 billion (31 December 2008 est.)

Debt - external

$6.245 billion (31 December 2009 est.)
$5.977 billion (31 December 2008 est.)

Market value of publicly traded shares

$NA

Currency (code)

Yemeni rial (YER)

Exchange rates

Yemeni rials (YER) per US dollar - 203.05 (2009), 199.76 (2008), 199.14 (2007), 197.18 (2006), 192.67 (2005)

Fiscal year

calendar year