Business

Yemen’s economy making slow progress

National Yemen

Track at Aden port transfer wheat

By Hisham Al-Bakeery

Chairman of the Economic Experts Group Mohammed Al-Mateemi has stated that the Yemeni economy is in a serious state of danger and that unemployment has reached critical levels, placing it on the same level as last year.

“There were expectations that the economy would rise around 6.7 percent, but indicators have shown efforts to achieve progress have been stymied by the current political and security situation,” said Al-Mateemi.

He added that the government had not exhibited a willingness to absorb donations and grants, and also that donors themselves had failed to fulfill their pledges. According to Al-Mateemi, donors promised to provide Yemen with financial support through investment projects, but the government hadn’t received any.

“This is due to the fact that the government didn’t reveal any plans or programs to absorb the pledges, even while it had a crucial opportunity for cooperation with the international community,” he added.

Al-Mateeemi attributed this deficiency to the weak performance of government institutions and their administrative boards. He added that political conflicts within the government formed a wall before attempts at achieving any progress in restoring the state’s institutional infrastructure.

“We are afraid that the political conflicts may destroy the whole political process Yemen is passing through,” said the chairman.

Mansour Al-Basheeri, Manager of the Ministry of Planning’s Studies Department, said he believes that the economy managed to move one single step forward and also that it is currently stable.

“However, this does not mean the economy has overcome the dangerous stage; it is still recovering from the crisis it passed through in 2011,” he added.

According to Al-Mateemi, many indicators show that the economy is progressing, as there is stability in terms of state revenues and sufficient foreign exchange reserves.