Yemen Economy Loses $126 Billion as Poverty, Unemployment and Humanitarian Needs Surge

- ThursdayDAY, 07 May, 2026 - 03:34 PM
Yemen Economy Loses $126 Billion as Poverty, Unemployment and Humanitarian Needs Surge

New economic and development indicators released by Yemen Ministry of Planning and International Cooperation showed a continued deterioration in Yemen’s economic and humanitarian conditions, with sharp declines in GDP, rising poverty and unemployment rates, and widening humanitarian needs amid shrinking international funding.

 

According to the ministry’s 2024–2025 “Facts and Indicators in Yemen” summary, Yemen’s real gross domestic product contracted by 43 percent between 2015 and 2024, while cumulative economic losses were estimated at $126 billion. The report warned that losses could rise to $422 billion by 2030.


 

 

The indicators also showed that Yemen’s per capita GDP at current prices dropped to $471 in 2024, compared with $1,430 in 2014, reflecting the country’s worsening economic conditions and declining living standards.

 

On the social front, multidimensional poverty reached 50.3 percent nationwide, with higher levels recorded in rural areas at 51.1 percent, compared with 44.3 percent in urban areas.

 

Youth unemployment in Yemen stood at 32.4 percent, exceeding the global average youth unemployment rate by 18.8 percentage points, according to the official figures.

 

Humanitarian indicators showed that around 23.1 million people across Yemen are expected to require humanitarian assistance and protection services in 2026, compared with 19.5 million in 2024 and 18.2 million in 2025.

 

The ministry said actual humanitarian funding coverage in Yemen for 2025 stood at only 28 percent of total needs, compared with an average coverage rate of 64 percent during the 2016–2024 period, highlighting a growing humanitarian funding gap.

 

In development indicators, Yemen scored 0.635 on the Development Challenges Index, ranking 159th globally. The country also fell to 184th place out of 193 countries in the 2025 Human Development Report, down from 160th place in 2014.

 

The report added that Yemen’s Human Development Index value stood at 0.470, compared with an average of 0.719 for Arab countries and 0.560 for the world’s least developed countries, underscoring the country’s ongoing decline in development and basic service indicators.


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