Business

Income Rates Decline by 40%

National Yemen

By NY Staff

Comparing with the previous years, the purchasing ability of consumers declined 40% in 2014. While the private sector is revealing their current deterioration due to this decline, businessmen and economists are demanding an incentive programs to help fix the current critical situation. They hope for a significant evolution and economic growth in 2015.

Food wholesaler in Sha’aoob area in the Sana’a, Abdullah Al-Rohee, said, “We noticed a decline in buying some foodstuffs. In the first month, we thought that the market will activate next month but found people continued buying only the necessary foodstuffs.”

The Deputy Director General of Shumaila Hari Supper Market, Sami Mayad, said that the commercial activity of the private sector faced a decline from 30 to 40%, confirming that this decline wasn’t in 2011.

Mayad blamed the decline on the government. According to him, it didn’t take the necessary procedures to stop the decline of peoples’ income. “Government employees no longer get the financial entitlements as in the past. Also the deterioration of security made foreigners stop their work and leave the country after they were spending a lot of money on shopping and buying products,” he added.

Banking expert Dr. Ismail al-Gilani said that state expenses are very weak. “The state stopped supporting investment projects, which help in activating the national economy and made its expenses limited only to the salaries of government employees,” he said.

Al-Gilani confirmed that the government is the main reason of this decline in the purchasing ability of the people, especially after stopping financial entitlements in the construction sector, which affects thousands of employees.