An International Monetary Fund (IMF) team, led by Esther Pérez Ruiz, recently concluded a mission in Amman, Jordan, where they engaged with Yemeni authorities from January 19 to 23, 2025. The discussions focused on Yemen's economic situation, future prospects, and progress in policy reforms.
At the end of the mission, Ms. Pérez Ruiz stated: “Over the past year, the conflict in the Middle East, including tensions in the Red Sea, has worsened Yemen’s already critical humanitarian crisis. Declining aid and disrupted humanitarian operations have left over 17 million people facing food insecurity, widespread malnutrition, and a rise in preventable diseases."
The statement highlighted that Yemen's economy continued to decline throughout 2024 due to various factors such as depreciation of the Yemeni rial and halted oil exports. Fiscal challenges remain significant with low reserves and growing arrears. Despite these difficulties, Yemeni authorities are committed to maintaining macroeconomic stability and advancing structural reforms.
“The ongoing political stalemate clouds Yemen’s near-term economic outlook," said Ms. Pérez Ruiz. However, she noted that recent geopolitical developments like the ceasefire in Gaza could offer hope for easing regional tensions. She emphasized that internal dialogue and policy reforms are crucial for improving Yemen's economic situation.
Key areas identified for reviving growth include unifying currency and resuming oil exports which previously contributed significantly to government revenues before their suspension in 2022. Reforms are also needed in fiscal discipline and electricity sector improvements.
Ms. Pérez Ruiz added: “Preserving financial sector stability and facilitating essential capital inflows underscore the need for enhanced oversight and adherence to international standards." She stressed that external assistance remains vital for addressing Yemen’s needs.
The IMF team expressed gratitude towards Yemeni authorities for their cooperation during discussions and looks forward to ongoing collaboration.