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)
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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.

 



Death Toll in Gaza from Israel-Hamas War Passes 44,000

A Palestinian man reacts as he carries a young victim inside the Kamal Adwan hospital following an Israeli strike that hit an area near the medical establishment in Beit Layia in the northern Gaza Strip early on November 21, 2024, reportedly leaving dozens of people killed or unaccounted for. (Photo by AFP)
A Palestinian man reacts as he carries a young victim inside the Kamal Adwan hospital following an Israeli strike that hit an area near the medical establishment in Beit Layia in the northern Gaza Strip early on November 21, 2024, reportedly leaving dozens of people killed or unaccounted for. (Photo by AFP)
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Death Toll in Gaza from Israel-Hamas War Passes 44,000

A Palestinian man reacts as he carries a young victim inside the Kamal Adwan hospital following an Israeli strike that hit an area near the medical establishment in Beit Layia in the northern Gaza Strip early on November 21, 2024, reportedly leaving dozens of people killed or unaccounted for. (Photo by AFP)
A Palestinian man reacts as he carries a young victim inside the Kamal Adwan hospital following an Israeli strike that hit an area near the medical establishment in Beit Layia in the northern Gaza Strip early on November 21, 2024, reportedly leaving dozens of people killed or unaccounted for. (Photo by AFP)

The death toll in the Gaza Strip from the 13-month-old war between Israel and Hamas has surpassed 44,000, local health officials said Thursday.
The Gaza Health Ministry does not distinguish between civilians and combatants in its count, but it has said that more than half of the fatalities are women and children. The Israeli military says it has killed over 17,000 militants, without providing evidence.
The Health Ministry said 44,056 people have been killed and 104,268 wounded since the start of the war. It has said the real toll is higher because thousands of bodies are buried under rubble or in areas that medics cannot access, The Associated Press said.
The war began when Hamas-led militants stormed into southern Israel on Oct. 7, 2023, killing some 1,200 people, mostly civilians, and abducting another 250. Around 100 hostages are still inside Gaza, at least a third of whom are believed to be dead. Most of the rest were released during a cease-fire last year.
In Lebanon, the death toll from Israeli strikes and combat has surpassed 3,580 people, with more than 15,000 wounded, according to Lebanon’s Health Ministry. At least 51 people were killed Thursday in Israeli strikes on towns and villages across Lebanon.
The Israeli offensive in Gaza has caused heavy destruction across wide areas of the coastal territory, leading many to wonder when or how it will ever be rebuilt. Around 90% of the population of 2.3 million people have been displaced, often multiple times, and hundreds of thousands are living in squalid tent camps with little food, water or basic services.
Israel says it tries to avoid harming civilians and blames their deaths on Hamas because the militants operate in residential areas, where they have built tunnels, rocket launchers and other military infrastructure.
Palestinian officials and rights groups accuse Israeli forces of war crimes and crimes against humanity, and the United Nations’ top court is considering allegations of genocide brought by South Africa. The Israeli government adamantly denies the allegations, accusing critics of being biased against it.
In recent weeks, the amount of humanitarian aid entering Gaza has plummeted, prompting the United States to threaten to reduce its military support for Israel before backing down, citing limited progress. Experts have warned that isolated, war-ravaged northern Gaza could already be experiencing famine.
The United States, Egypt and Qatar spent months trying to broker a cease-fire agreement in which Hamas would release the remaining hostages in exchange for an end to the war. Those talks ground to a halt over the summer, with Israel and Hamas each accusing the other of making unacceptable demands.
US President-elect Donald Trump has vowed to end the wars in the Middle East without saying how. His previous administration gave unprecedented support to Israel and Prime Minister Benjamin Netanyahu’s hard-line policies toward the Palestinians.