Yemen’s economy, worth $20 billion, is ravaged by war, with agriculture, employing 60% of the workforce, producing coffee and qat. Oil and gas, once 90% of exports, are disrupted, though small-scale production persists. Fisheries and remittances (10% of GDP) are key. Informal trade sustains livelihoods. Emerging sectors include telecoms and potential solar energy, given Yemen’s climate. Conflict, famine, and infrastructure collapse since 2015, limit growth. Peace and humanitarian aid are critical to reviving agriculture and unlocking Yemen’s trade potential along Red Sea routes.
Yemen Economy Size
Yemen’s economy, worth $20 billion, is small and devastated, with agriculture and oil driving its GDP, limited by conflict. See Yemen GDP.
Yemen Purchasing Power Parity (PPP)
Yemen’s economy has a PPP GDP of $70 billion, over three times its $20 billion nominal GDP, due to low costs for agriculture and oil. PPP per capita is around $2,500, reflecting severe poverty. Conflict limits PPP benefits, with domestic pricing supporting basic survival in local markets.
Yemen Growth Rate
The economic growth rate is 0.5% in 2024, reflecting stagnation due to conflict. Agriculture and informal trade drive minimal activity, but displacement and infrastructure collapse limit gains. Remittances provide some resilience, while resource potential exists, positioning the economy for negligible progress without peace.
Yemen Inflation
Yemen’s inflation rate is around 30% in 2024, driven by conflict-related supply disruptions and currency depreciation. Import reliance for food and fuel skyrockets costs, while agricultural output collapses. Remittances provide some relief, but weak governance sustains high inflation, severely impacting living standards in this war-torn economy.
