The ongoing civil conflict in Yemen since 2015 has devastated the country’s economy and exacerbated humanitarian needs. GDP has declined over 50% as conflict disrupted agriculture, industry, trade and vital infrastructure like ports.
Yemen relies heavily on imports for food, fuel and medicines; yet the conflict has damaged ports used for over 90% of commercial shipping. Airspace restrictions further complicate delivery of aid and commercial goods. Hence, the impact of Yemen conflict can be hazardous for the country.
Over time— the Yemeni Rial lost 80% of its value against the USD on the black market. Inflation soared above 1000%, wiping out savings and purchasing power for most Yemenis now under threat of famine.
Bombings and violence forced millions from their homes and livelihoods. Agriculture which employs over 50% of Yemenis suffered as fields were neglected or destroyed. Livestock herds were looted or died off.
based on the Yemen conflict – Oil and gas production vital to the economy halted as facilities and pipelines fell under rebel control. With public finances dwindling, the government struggled to pay salaries or provide services.
Foreign investment and tourism completely evaporated in the unstable security environment. Business confidence will take years to restore if the conflict ends soon. Rebuilding ports and other infrastructure to pre-war capacity requires massive investment.
More research is needed on prospects for economic recovery in post-conflict scenarios under different political outcomes. International support will be critical to meeting Yemen’s humanitarian needs and restarting economic activity in the short-run.
The Yemen conflict has also taken a severe psychological and social toll on Yemenis. Widespread trauma from violence and loss of livelihoods risks fueling grievances and instability for generations. Rebuilding the economy must go hand in hand with efforts to promote reconciliation, justice, and mental healthcare.
Yemen’s rainy mountainous terrain complicates delivery of aid, especially with ongoing fighting. Drones could help monitor needs in remote areas but require cooperation between parties for safe access. Satellite imagery also aids assessment where access is blocked.
