عربي English Türkçe اردو فارسى
Logo
Latest News
Arab World

World Bank: Houthi Blockade on Oil Exports in Yemen Worsens Food Security

Yemen’s GDP is projected to contract by 1% in 2024 (WB)
Yemen’s GDP is projected to contract by 1% in 2024 (WB)
TT
TT

World Bank: Houthi Blockade on Oil Exports in Yemen Worsens Food Security

Yemen’s GDP is projected to contract by 1% in 2024 (WB)
Yemen’s GDP is projected to contract by 1% in 2024 (WB)

The World Bank said on Friday that the Houthi blockade on oil exports has led to the deterioration of food security in Yemen to unprecedented levels.
It stressed that Yemen’s economy continues to confront deepening challenges as prolonged conflict, political fragmentation, and escalating regional tensions drive the country into an even more severe humanitarian and economic crisis.
In the Fall edition of its Yemen Economic Monitor (YEM) entitled “Confronting Escalating Challenges,” the WB revealed that Yemen’s GDP is projected to contract by 1% in 2024, following a 2% decline in 2023, exacerbating the 54% drop in real GDP per capita since 2015.
It then affirmed that the conflict has pushed most Yemenis into poverty, while food insecurity has reached historic levels, with over 60% of the population now facing inadequate access to food.
The report also underscored the significant economic hardships caused by the continued Houthi blockade on oil exports, which contributed to a 42% drop in fiscal revenues for the internationally recognized government in the first half of 2024, preventing it from providing essential services to the population.
The suspension of the government oil exports, combined with a heavy reliance on imports, has intensified external pressures, leading to a depreciation of the Yemeni Rial in the Aden market from 1,619 per US dollar in January 2024 to 1,917 by the end of August, it noted.
Living Conditions Deteriorate
Since 2023, the WB report said living conditions have deteriorated drastically for the majority of the population.
In July 2024, World Bank phone surveys indicated that severe food deprivation more than doubled in some governorates.
Also, economic fragmentation between Houthi-held and government-controlled areas continues to worsen, with disparities in inflation and exchange rates undermining both stability and future recovery efforts.
Simultaneously, regional tensions, especially in the Red Sea, have led to a more than 60% reduction in traffic through the strategic Bab El-Mandeb Strait and the Suez Canal.
However, the report said these disruptions have not yet resulted in significant increases in consumer prices.
“Yemen’s economic and humanitarian challenges are growing more acute, yet the opportunity remains to reverse this downward trend with the right support,” said Dina Abu-Ghaida, WB Country Manager for Yemen.
She added that immediate action is required, including addressing fiscal and external imbalances, mitigating food insecurity, and fostering greater stability. “We remain committed to working closely with partners to support Yemen’s recovery and pave the way for a sustainable future.”
Potential Risks
In its report, the WB further detailed the potential risks to Yemen’s banking sector, which faced mounting tensions between the Houthis and government-controlled government over regulatory control in the first half of the year.
While regional and international mediation efforts have helped ease some tensions, the report said the situation remains fragile, and the report recommends strengthening institutional resilience to manage inflation and fiscal challenges.
It also suggests improving trade routes and access to financial services to ease economic pressures and prevent further fragmentation.
The report affirmed that Yemen’s economic outlook for 2025 remains bleak, with the continuation of regional conflict and internal strife threatening to deepen the fragmentation and worsen the social and humanitarian crisis.
However, it noted that a potential peace dividend could spur rapid economic recovery, should a durable peace agreement be reached.
“This would pave the way for vital external assistance, reconstruction, and reforms necessary to stabilize the country and its economy,” the report said.

 

Most Viewed

 
 
Arab World

As Flooding Becomes a Yearly Disaster in South Sudan, Thousands Survive on the Edge of a Canal

Children ride in a small canoe around the area where they live in Jonglei state, South Sudan. (Photo: AP)
Children ride in a small canoe around the area where they live in Jonglei state, South Sudan. (Photo: AP)
TT
TT

As Flooding Becomes a Yearly Disaster in South Sudan, Thousands Survive on the Edge of a Canal

Children ride in a small canoe around the area where they live in Jonglei state, South Sudan. (Photo: AP)
Children ride in a small canoe around the area where they live in Jonglei state, South Sudan. (Photo: AP)

Long-horned cattle wade through flooded lands and climb a slope along a canal that has become a refuge for displaced families in South Sudan. Smoke from burning dung rises near homes of mud and grass where thousands of people now live after floods swept away their village.
“Too much suffering,” said Bichiok Hoth Chuiny, a woman in her 70s. She supported herself with a stick as she walked in the newly established community of Pajiek in Jonglei state north of the capital, Juba, The Associated Press said.
For the first time in decades, the flooding had forced her to flee. Her efforts to protect her home by building dykes failed. Her former village of Gorwai is now a swamp.
“I had to be dragged in a canoe up to here,” Chuiny said. An AP journalist was the first to visit the community.
Such flooding is becoming a yearly disaster in South Sudan, which the World Bank has described as “the world’s most vulnerable country to climate change and also the one most lacking in coping capacity."
More than 379,000 people have been displaced by flooding this year, according to the UN humanitarian agency.
Seasonal flooding has long been part of the lifestyle of pastoral communities around the Sudd, the largest wetlands in Africa, in the Nile River floodplain. But since the 1960s the swamp has kept growing, submerging villages, ruining farmland and killing livestock.
“The Dinka, Nuer and Murle communities of Jonglei are losing the ability to keep cattle and do farming in that region the way they used to,” said Daniel Akech Thiong, a senior analyst with the International Crisis Group.
South Sudan is poorly equipped to adjust. Independent since 2011, the country plunged into civil war in 2013. Despite a peace deal in 2018, the government has failed to address numerous crises. Some 2.4 million people remain internally displaced by conflict and flooding.
The latest overflowing of the Nile has been blamed on factors including the opening of dams upstream in Uganda after Lake Victoria rose to its highest levels in five years.
The century-old Jonglei Canal, which was never completed, has become a refuge for many.
“We don’t know up to where this flooding would have pushed us if the canal was not there,” said Peter Kuach Gatchang, the paramount chief of Pajiek. He was already raising a small garden of pumpkins and eggplants in his new home.
The 340-kilometer (211-mile) Jonglei Canal was first imagined in the early 1900s by Anglo-Egyptian colonial authorities to increase the Nile’s outflow towards Egypt in the north. But its development was interrupted by the long fight of southern Sudanese against the Sudanese regime in Khartoum that eventually led to the creation of a separate country.
Gatchang said the new community in Pajiek is neglected: "We have no school and no clinic here, and if you stay for a few days, you will see us carrying our patients on stretchers up to Ayod town.”
Ayod, the county headquarters, is reached by a six-hour walk through the waist-high water.
Pajiek also has no mobile network and no government presence. The area is under the control of the Sudan People’s Liberation Movement-in-Opposition, founded by President Salva Kiir’s rival turned Vice President Riek Machar.
Villagers rely on aid. On a recent day, hundreds of women lined up in a nearby field to receive some from the World Food Program.
Nyabuot Reat Kuor walked home with a 50-kilogram (110-pound) bag of sorghum balanced on her head.
“This flooding has destroyed our farm, killed our livestock and displaced us for good," the mother of eight said. “Our old village of Gorwai has become a river.”
When food assistance runs out, she said, they will survive on wild leaves and water lilies from the swamp. Already in recent years, food aid rations have been cut in half as international funding for such crises drops.
More than 69,000 people who have migrated to the Jonglei Canal in Ayod county are registered for food assistance, according to WFP.
“There are no passable roads at this time of the year, and the canal is too low to support boats carrying a lot of food,” said John Kimemia, a WFP airdrop coordinator.
In the neighboring Paguong village that is surrounded by flooded lands, the health center has few supplies. Medics haven’t been paid since June due to an economic crisis that has seen civil servants nationwide go unpaid for more than a year.
South Sudan’s economic woes have deepened with the disruption of oil exports after a major pipeline was damaged in Sudan during that country's ongoing civil war.
“The last time we got drugs was in September. We mobilized the women to carry them on foot from Ayod town,” said Juong Dok Tut, a clinical officer.
Patients, mostly women and children, sat on the ground as they waited to see the doctor. Panic rippled through the group when a thin green snake passed among them. It wasn't poisonous, but many others in the area are. People who venture into the water to fish or collect water lilies are at risk.
Four life-threatening snake bites cases occurred in October, Tut said. “We managed these cases with the antivenom treatments we had, but now they’re over, so we don’t know what to do if it happens again.”