Macro - Country Economic Forecasts - Yemen, Rep

Macro - Country Economic Forecasts - Yemen, Rep

We have cut our 2022 GDP growth forecast for Yemen by 0.6ppts to 1% to reflect the failure to extend the six-month UN brokered ceasefire between the Saudi-led coalition and Houthi rebels and the worsening global inflation crisis due to the war in Ukraine. The elapsed ceasefire, which was initially successful in significantly reducing hostilities, now threatens to reignite the conflict. Despite increased oil exports, decreasing displacement rates, and a fall in inflation compared to 2021, the outlook for 2022 and 2023 remain poor.

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