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Yemen vs. Oman

Economy

YemenOman
Economy - overview

Yemen is a low-income country that faces difficult long-term challenges to stabilizing and growing its economy, and the current conflict has only exacerbated those issues. The ongoing war has halted Yemen’s exports, pressured the currency’s exchange rate, accelerated inflation, severely limited food and fuel imports, and caused widespread damage to infrastructure. The conflict has also created a severe humanitarian crisis - the world’s largest cholera outbreak currently at nearly 1 million cases, more than 7 million people at risk of famine, and more than 80% of the population in need of humanitarian assistance.

Prior to the start of the conflict in 2014, Yemen was highly dependent on declining oil and gas resources for revenue. Oil and gas earnings accounted for roughly 25% of GDP and 65% of government revenue. The Yemeni Government regularly faced annual budget shortfalls and tried to diversify the Yemeni economy through a reform program designed to bolster non-oil sectors of the economy and foreign investment. In July 2014, the government continued reform efforts by eliminating some fuel subsidies and in August 2014, the IMF approved a three-year, $570 million Extended Credit Facility for Yemen.

However, the conflict that began in 2014 stalled these reform efforts and ongoing fighting continues to accelerate the country’s economic decline. In September 2016, President HADI announced the move of the main branch of Central Bank of Yemen from Sanaa to Aden where his government could exert greater control over the central bank’s dwindling resources. Regardless of which group controls the main branch, the central bank system is struggling to function. Yemen’s Central Bank’s foreign reserves, which stood at roughly $5.2 billion prior to the conflict, have declined to negligible amounts. The Central Bank can no longer fully support imports of critical goods or the country’s exchange rate. The country also is facing a growing liquidity crisis and rising inflation. The private sector is hemorrhaging, with almost all businesses making substantial layoffs. Access to food and other critical commodities such as medical equipment is limited across the country due to security issues on the ground. The Social Welfare Fund, a cash transfer program for Yemen’s neediest, is no longer operational and has not made any disbursements since late 2014.

Yemen will require significant international assistance during and after the protracted conflict to stabilize its economy. Long-term challenges include a high population growth rate, high unemployment, declining water resources, and severe food scarcity.

Oman is heavily dependent on oil and gas resources, which can generate between and 68% and 85% of government revenue, depending on fluctuations in commodity prices. In 2016, low global oil prices drove Oman’s budget deficit to $13.8 billion, or approximately 20% of GDP, but the budget deficit is estimated to have reduced to 12% of GDP in 2017 as Oman reduced government subsidies. As of January 2018, Oman has sufficient foreign assets to support its currency’s fixed exchange rates. It is issuing debt to cover its deficit.

Oman is using enhanced oil recovery techniques to boost production, but it has simultaneously pursued a development plan that focuses on diversification, industrialization, and privatization, with the objective of reducing the oil sector's contribution to GDP. The key components of the government's diversification strategy are tourism, shipping and logistics, mining, manufacturing, and aquaculture.

Muscat also has notably focused on creating more Omani jobs to employ the rising number of nationals entering the workforce. However, high social welfare benefits - that had increased in the wake of the 2011 Arab Spring - have made it impossible for the government to balance its budget in light of current oil prices. In response, Omani officials imposed austerity measures on its gasoline and diesel subsidies in 2016. These spending cuts have had only a moderate effect on the government’s budget, which is projected to again face a deficit of $7.8 billion in 2018.

GDP (purchasing power parity)$73.63 billion (2017 est.)

$78.28 billion (2016 est.)

$90.63 billion (2015 est.)

note: data are in 2017 dollars
$135.814 billion (2019 est.)

$138.089 billion (2018 est.)

$135.696 billion (2017 est.)

note: data are in 2017 dollars
GDP - real growth rate-5.9% (2017 est.)

-13.6% (2016 est.)

-16.7% (2015 est.)
-0.9% (2017 est.)

5% (2016 est.)

4.7% (2015 est.)
GDP - per capita (PPP)$2,500 (2017 est.)

$2,700 (2016 est.)

$3,200 (2015 est.)

note: data are in 2017 dollars
$27,299 (2019 est.)

$28,593 (2018 est.)

$29,082 (2017 est.)

note: data are in 2017 dollars
GDP - composition by sectoragriculture: 20.3% (2017 est.)

industry: 11.8% (2017 est.)

services: 67.9% (2017 est.)
agriculture: 1.8% (2017 est.)

industry: 46.4% (2017 est.)

services: 51.8% (2017 est.)
Population below poverty line48.6% (2014 est.)NA
Household income or consumption by percentage sharelowest 10%: 2.6%

highest 10%: 30.3% (2008 est.)
lowest 10%: NA

highest 10%: NA
Inflation rate (consumer prices)24.7% (2017 est.)

-12.6% (2016 est.)
0.1% (2019 est.)

0.7% (2018 est.)

1.7% (2017 est.)
Labor force7.425 million (2017 est.)2.255 million (2016 est.)

note: about 60% of the labor force is non-national
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

agriculture: 4.7% NA

industry: 49.6% NA

services: 45% NA (2016 est.)
Unemployment rate27% (2014 est.)

35% (2003 est.)

NA

Budgetrevenues: 2.821 billion (2017 est.)

expenditures: 4.458 billion (2017 est.)
revenues: 22.14 billion (2017 est.)

expenditures: 31.92 billion (2017 est.)
Industriescrude oil production and petroleum refining; small-scale production of cotton textiles, leather goods; food processing; handicrafts; aluminum products; cement; commercial ship repair; natural gas productioncrude oil production and refining, natural and liquefied natural gas production; construction, cement, copper, steel, chemicals, optic fiber
Industrial production growth rate8.9% (2017 est.)-3% (2017 est.)
Agriculture - productsmangoes/guavas, potatoes, sorghum, onions, milk, poultry, watermelons, grapes, oranges, bananasdates, tomatoes, vegetables, goat milk, milk, cucumbers, green chillies/peppers, watermelons, sorghum, melons
Exports$384.5 million (2017 est.)

$940 million (2016 est.)
$103.3 billion (2017 est.)

$27.54 billion (2016 est.)
Exports - commoditiescrude petroleum, gold, fish, industrial chemical liquids, scrap iron (2019)crude petroleum, natural gas, refined petroleum, iron products, fertilizers (2019)
Exports - partnersChina 53%, Saudi Arabia 10%, United Arab Emirates 7%, Australia 5% (2019)China 46%, India 8%, Japan 6%, South Korea 6%, United Arab Emirates 6%, Saudi Arabia 5% (2019)
Imports$4.079 billion (2017 est.)

$3.117 billion (2016 est.)
$24.12 billion (2017 est.)

$21.29 billion (2016 est.)
Imports - commoditieswheat, refined petroleum, iron, rice, cars (2019)cars, refined petroleum, broadcasting equipment, gold, iron (2019)
Imports - partnersChina 25%, Turkey 10%, United Arab Emirates 9%, Saudi Arabia 8%, India 7% (2019)United Arab Emirates 36%, China 10%, Japan 7%, India 7%, United States 5% (2019)
Debt - external$6.805 billion (2018 est.)

$7.181 billion (31 December 2016 est.)
$46.27 billion (31 December 2017 est.)

$27.05 billion (31 December 2016 est.)
Exchange ratesYemeni rials (YER) per US dollar -

275 (2017 est.)

214.9 (2016 est.)

214.9 (2015 est.)

228 (2014 est.)

214.89 (2013 est.)
Omani rials (OMR) per US dollar -

0.38505 (2020 est.)

0.38505 (2019 est.)

0.385 (2018 est.)

0.3845 (2014 est.)

0.3845 (2013 est.)
Fiscal yearcalendar yearcalendar year
Public debt74.5% of GDP (2017 est.)

68.1% of GDP (2016 est.)
46.9% of GDP (2017 est.)

32.5% of GDP (2016 est.)

note: excludes indebtedness of state-owned enterprises
Reserves of foreign exchange and gold$245.4 million (31 December 2017 est.)

$592.6 million (31 December 2016 est.)
$16.09 billion (31 December 2017 est.)

$20.26 billion (31 December 2016 est.)
Current Account Balance-$1.236 billion (2017 est.)

-$1.868 billion (2016 est.)
-$10.76 billion (2017 est.)

-$12.32 billion (2016 est.)
GDP (official exchange rate)$54.356 billion (2018 est.)$76.883 billion (2019 est.)
Taxes and other revenues9% (of GDP) (2017 est.)31.3% (of GDP) (2017 est.)
Budget surplus (+) or deficit (-)-5.2% (of GDP) (2017 est.)-13.8% (of GDP) (2017 est.)
Unemployment, youth ages 15-24total: 24.5%

male: 23.5%

female: 34.6% (2014 est.)
total: 13.7%

male: 10.3%

female: 33.9% (2016)
GDP - composition, by end usehousehold consumption: 116.6% (2017 est.)

government consumption: 17.6% (2017 est.)

investment in fixed capital: 2.2% (2017 est.)

investment in inventories: 0% (2017 est.)

exports of goods and services: 7.5% (2017 est.)

imports of goods and services: -43.9% (2017 est.)
household consumption: 36.8% (2017 est.)

government consumption: 26.2% (2017 est.)

investment in fixed capital: 27.8% (2017 est.)

investment in inventories: 3% (2017 est.)

exports of goods and services: 51.5% (2017 est.)

imports of goods and services: -46.6% (2017 est.)
Gross national saving-1.9% of GDP (2017 est.)

-3.7% of GDP (2016 est.)

-4.5% of GDP (2015 est.)
14.8% of GDP (2019 est.)

19% of GDP (2018 est.)

12% of GDP (2017 est.)

Source: CIA Factbook