Yemen Economy Profile 2012

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. 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. In January 2010, the international community established the Friends of Yemen group that aims to support Yemen's efforts towards economic and political reform, and in August 2010 the IMF approved a three-year $370 million program to further this effort. Despite these ambitious endeavors, Yemen continues to face difficult long term challenges, including declining water resources and a high population growth rate.

GDP (purchasing power parity)

$63.4 billion (2010 est.)
$58.69 billion (2009 est.)
$56.51 billion (2008 est.)
note: data are in 2010 US dollars

GDP (official exchange rate)

$31.27 billion (2010 est.)

GDP - real growth rate

8% (2010 est.)
3.9% (2009 est.)
3.6% (2008 est.)

GDP - per capita (PPP)

$2,700 (2010 est.)
$2,600 (2009 est.)
$2,500 (2008 est.)
note: data are in 2010 US dollars

GDP - composition by sector

agriculture: 8.3%
industry: 38.5%
services: 53.3% (2010 est.)

Population below poverty line

45.2% (2003)

Labor force

6.832 million (2010 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)

19.1% of GDP (2010 est.)

Budget

revenues: $8.861 billion
expenditures: $8.492 billion (2010 est.)

Taxes and other revenues

28.3% of GDP (2010 est.)

Budget surplus (+) or deficit (-)

1.2% of GDP (2010 est.)

Public debt

30.8% of GDP (2010 est.)
35.4% of GDP (2009 est.)

Inflation rate (consumer prices)

11.2% (2010 est.)
5.4% (2009 est.)

Central bank discount rate

NA%

Commercial bank prime lending rate

25% (31 December 2010 est.)
18% (31 December 2009 est.)

Stock of narrow money

$3.679 billion (31 December 2010 est.)
$3.659 billion (31 December 2009 est.)

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 broad money

$10.13 billion (31 December 2010 est.)
$9.346 billion (31 December 2009 est.)

Stock of domestic credit

$6.183 billion (31 December 2010 est.)
$4.988 billion (31 December 2009 est.)

Market value of publicly traded shares

$NA

Agriculture - products

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

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

9% (2010 est.)

Electricity - production

6.153 billion kWh (2008 est.)

Electricity - production by source

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

Electricity - consumption

4.646 billion kWh (2008 est.)

Electricity - exports

0 kWh (2009 est.)

Electricity - imports

0 kWh (2009 est.)

Oil - production

258,800 bbl/day (2010 est.)

Oil - consumption

157,000 bbl/day (2010 est.)

Oil - exports

207,700 bbl/day (2009 est.)

Oil - imports

64,610 bbl/day (2009 est.)

Oil - proved reserves

3 billion bbl (1 January 2011 est.)

Natural gas - production

520 million cu m (2009 est.)

Natural gas - consumption

100 million cu m (2009 est.)

Natural gas - exports

420 million cu m (2009 est.)

Natural gas - imports

0 cu m (2009 est.)

Natural gas - proved reserves

478.5 billion cu m (1 January 2011 est.)

Current Account Balance

-$1.944 billion (2010 est.)
-$2.565 billion (2009 est.)

Exports

$7.718 billion (2010 est.)
$5.855 billion (2009 est.)

Exports - commodities

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

Exports - partners

China 34.4%, India 23%, Thailand 6.6%, South Africa 5.7%, Japan 5.3%, UAE 4.8% (2010)

Imports

$8.701 billion (2010 est.)
$7.868 billion (2009 est.)

Imports - commodities

food and live animals, machinery and equipment, chemicals

Imports - partners

UAE 13.5%, China 12.2%, India 8.9%, Saudi Arabia 6.4%, Kuwait 4.7%, France 4.3%, Brazil 4.1% (2010)

Reserves of foreign exchange and gold

$5.942 billion (31 December 2010 est.)
$6.993 billion (31 December 2009 est.)

Debt - external

$6.586 billion (31 December 2010 est.)
$6.356 billion (31 December 2009 est.)

Stock of direct foreign investment - at home

$NA

Exchange rates

Yemeni rials (YER) per US dollar -
220.05 (2010)
202.85 (2009)
199.76 (2008)
199.14 (2007)
197.18 (2006)