The economic architecture of Yemen is substantial, anchored by a Gross Domestic Product (GDP) of approximately $21.61B
2018
. This places it as the 116th largest economy out of 191 countries measured, underscoring its significance on the world stage. On a per capita basis, GDP stands at $477.41
2023
, while its GDP adjusted for Purchasing Power Parity (PPP) is estimated at $92.76B, offering a clearer picture of the population's domestic purchasing power. The economy is navigating a period of modest growth, recorded at 0.8%
2018
, while managing moderate inflation, with a CPI of 8.1%.
2014
On the global stage, Yemen's trade and financial dynamics reveal a complex interplay of international and domestic factors. The nation's economic activity is heavily reliant on foreign goods, running a considerable trade deficit with imports at 50.1% of GDP and exports at 8.8%
2018
. The investment climate attracts significant Foreign Direct Investment (FDI), with inflows constituting -1.69% of the economy
2019
. This performance positions the country 172nd globally out of 186 nations, confirming its status as a competitive destination for foreign capital. Furthermore, personal remittances from its diaspora are a vital component of the economy, amounting to a substantial $3.77B annually
2023
.
The socio-economic landscape is characterized by a Gross National Income (GNI) per capita of $740
2018
, ranking the nation 177th out of 190. This figure provides a comprehensive measure of the average income per person, reflecting the nation's overall economic well-being. The country confronts significant labor market challenges, evidenced by a high unemployment rate of 17.1%.
2024
A key feature of the workforce is its concentration in the services sector, which accounts for 60.2% of total employment
2023
. Despite its economic standing, poverty remains a salient issue, with 48.6% of the population living below the national poverty line
2014
. The nation exhibits a moderate degree of income inequality, with a Gini index of 36.7.
2014
In the environmental and energy sectors, the nation's policies and outcomes reflect its developmental priorities. Energy consumption per capita stands at 68.95 kg of oil equivalent
2022
, a metric that often correlates with industrial activity and living standards. The energy portfolio remains heavily dependent on conventional sources, with renewables contributing a modest 3.7%
2021
. This commitment places it 31st among 190 countries, highlighting its relative progress in decarbonization. Total greenhouse gas emissions were last recorded at 32.24K tonnes of CO2 equivalent
2023
, a key factor in its national climate strategy and international obligations.

Key Economic Insights

Macroeconomic Health

The economy faces a severe stagflationary environment, where high unemployment and high inflation are coupled with economic stagnation.

Trade & Investment Profile

The economy is largely insular and consumption-driven, relying heavily on imports and showing limited integration into global export markets.

Social Equity & Distribution

Ensuring equitable distribution of economic gains is fundamental for long-term social and political stability.

Energy & Sustainability

A heavy dependence on fossil fuels poses significant long-term risks, including exposure to price volatility, energy insecurity, and climate change impacts.

More About This Country

Neighbors & Regional Peers

Note: The information on this page has been compiled from authoritative sources. While every effort is made to ensure accuracy, please note that some figures may not be current or entirely precise.