Yemen’s Economy Pays Heavy Price of Houthi War

Houthi supporters rally in Sanaa in solidarity with Iran and Lebanon’s Hezbollah (AFP)
Houthi supporters rally in Sanaa in solidarity with Iran and Lebanon’s Hezbollah (AFP)
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Yemen’s Economy Pays Heavy Price of Houthi War

Houthi supporters rally in Sanaa in solidarity with Iran and Lebanon’s Hezbollah (AFP)
Houthi supporters rally in Sanaa in solidarity with Iran and Lebanon’s Hezbollah (AFP)

Yemeni government data has revealed the scale of the unprecedented economic and humanitarian deterioration the country has suffered because of a war that has dragged on for more than a decade, saying the conflict ignited by the Houthis caused cumulative losses to the national economy estimated at about $126 billion by 2021.

The figures come as poverty and unemployment widen and prospects for economic recovery decline at an alarming pace.

Data issued by the Ministry of Planning and International Cooperation showed that Yemen’s economy continued to contract under the weight of the war and its impact across productive and service sectors, amid stalled oil exports, weaker trade activity and growing pressure on the local currency.

This has directly affected living standards and people’s ability to secure their basic needs.

According to the report on economic, development and humanitarian indicators in Yemen for 2024 and 2025, real gross domestic product shrank by 43% between 2015 and 2024. It had contracted by about 50% between 2011 and 2021, reflecting, according to the report’s authors, the depth of the economic crisis and the continuing cumulative impact on all parts of the national economy.

The war has caused a decline in the activity of Yemeni ports and raised insurance fees, government media said.

Yemeni data shows that per capita GDP fell to just $471 in 2024, compared with $1,430 in 2014, a sharp decline that reveals the scale of the collapse in purchasing power and individual income levels during the war years.

The report attributes part of this decline to the repercussions of the war and Houthi attacks on oil export ports, which halted oil exports, the country’s main source of foreign currency. This has worsened public finance imbalances and weakened the government’s ability to fund basic services and development spending.

Unemployment exceeds average rates

In the labor market, Yemeni government data painted a bleak picture of employment conditions. Youth unemployment reached 32.4%, exceeding the global average of 13.6% and the Arab average of 25.9%, in a clear sign of the widening gap between education outcomes and labor market needs, as well as the weakened economy’s limited ability to generate new jobs.

The report said the continued decline in education, health and living standards has deepened the crisis, with human capital eroding and economic and social fragility expanding, especially among young people, who have become the most affected by the lack of job opportunities and weak training and rehabilitation programs.

Human development indicators also showed a sharp decline in Yemen’s global ranking. The country scored 0.470 on the Human Development Index, compared with an Arab average of 0.719, ranking 184th out of 193 countries in the 2025 Human Development Report. Yemen ranked 160th in 2014, reflecting the scale of the decline in education, health and income indicators.

Poverty widens

On the humanitarian front, the Yemeni report’s data showed a striking expansion in needs. The number of people requiring humanitarian assistance rose this year to about 23.1 million, compared with 19.5 million last year and 18.2 million the year before, as humanitarian funding falls sharply.

According to Yemeni government data, actual funding coverage for humanitarian needs last year did not exceed 28% of total needs, compared with an average of 64% between 2016 and 2024. This leaves millions of Yemenis facing a widening gap between rising needs and the resources available for humanitarian response.

The data also confirmed that 50.3% of Yemeni families suffer from multidimensional poverty, with a clear divide between rural and urban areas. The rate rises to 51.1% in rural areas, compared with 44.3% in urban areas, reflecting widening deprivation in income, education, health and basic services.

The report warned that the continuation of this trend would have long-term consequences for human capital and the prospects for economic recovery, given the close link between declining growth, rising poverty and unemployment, and the widening vulnerability of Yemeni families.

Food is available, but out of reach

On food security, Yemen’s Planning Ministry said that despite the availability of food commodities in markets in February, access to them remains the biggest challenge for Yemeni families because of the continued rise in prices, the falling value of the local currency and the sharp decline in humanitarian assistance.

According to a report by the Food Security Technical Secretariat at the Ministry of Planning and International Cooperation, supported by the Food Security and Nutrition Information Systems program of the Food and Agriculture Organization of the United Nations and funded by the World Bank, total imports of basic food commodities in February reached about 194,517 tons, including 84,000 tons of wheat, representing 43% of total food imports.

But this relative availability of supply did not prevent prices from continuing to rise. The price of one food basket reached about 232,000 Yemeni rials in February, up 3% from the start of this year, while food basket prices rose by 575% compared with levels recorded in 2016.

The crisis has been worsened by a sharp decline in food aid distribution. Food assistance reached only 2% of total beneficiaries, while those benefiting from nutrition assistance accounted for about 6%, low levels that reflect the limited response compared with the scale of rising needs.

The report’s authors called for an urgent package of policies, foremost among them supporting a comprehensive and sustainable peace process, ending the Houthi coup, stimulating economic growth, strengthening labor-intensive sectors, improving the business environment and increasing investment in infrastructure and human capital.

They also called for expanding youth employment programs and vocational training, describing this as the most realistic path to reducing poverty and achieving sustainable recovery.



Sudan’s Currency Tumbles to New Low as War Hammers Economy

People stand at a market in Omdurman, Sudan, September, 19, 2026. (Reuters)
People stand at a market in Omdurman, Sudan, September, 19, 2026. (Reuters)
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Sudan’s Currency Tumbles to New Low as War Hammers Economy

People stand at a market in Omdurman, Sudan, September, 19, 2026. (Reuters)
People stand at a market in Omdurman, Sudan, September, 19, 2026. (Reuters)

Sudan's currency ‌hit a new low of 10,000 Sudanese pounds to the dollar on Wednesday in parallel market trading, continuing a dramatic fall over recent months as wartime conditions take their toll on the economy.

The rapid 60% depreciation has heaped hardship on Sudanese still trying to regain their footing after devastating conflict and ‌forced displacement caused ‌by the war between ‌Sudanese ⁠armed forces and the ⁠paramilitary Rapid Support Forces, putting basic food items out of reach.

Sudan's official exchange rate remains stuck at 4,200 SDG to the dollar, a rate last seen on the parallel market ⁠in army-controlled areas in May.

A large ‌portion of ‌that fall has happened over the past month, ‌as the pound fell from a ‌previous low of 8,000, depreciating 20%. Prior to the start of the war in April 2023, the rate was about 600 ‌pounds to the dollar.

Currency traders cited import demands as a ⁠chief ⁠factor as the government increased the tightly controlled customs dollar, used to calculate duties, to more than 5,600 this week.

As the war continues Sudan has decreased production of key dollar earners while its chief export, gold, has increasingly been smuggled abroad. Meanwhile, the army-controlled government has said the war and reconstruction efforts require dollar-draining imports.


France Says to Hold Conference for Lebanese Forces after Israeli Elections

French President Emmanuel Macron gestures as he speaks to members of the media on the day of the 9th Annual One Planet Sovereign Wealth Funds (OPSWF) Summit, in Lusail, Qatar, 21 October 2026.  EPA/BENOIT TESSIER
French President Emmanuel Macron gestures as he speaks to members of the media on the day of the 9th Annual One Planet Sovereign Wealth Funds (OPSWF) Summit, in Lusail, Qatar, 21 October 2026. EPA/BENOIT TESSIER
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France Says to Hold Conference for Lebanese Forces after Israeli Elections

French President Emmanuel Macron gestures as he speaks to members of the media on the day of the 9th Annual One Planet Sovereign Wealth Funds (OPSWF) Summit, in Lusail, Qatar, 21 October 2026.  EPA/BENOIT TESSIER
French President Emmanuel Macron gestures as he speaks to members of the media on the day of the 9th Annual One Planet Sovereign Wealth Funds (OPSWF) Summit, in Lusail, Qatar, 21 October 2026. EPA/BENOIT TESSIER

French President Emmanuel Macron said on Wednesday that this country will organise a conference to support the Lebanese armed forces after the Israeli elections this month, as truce talks between the two sides stall.

"We will also coordinate to carry out this work of support for the Lebanese armed forces and a conference will be set up in the coming weeks by France... I think it is useless to do it before the Israeli elections, but we will organise such a conference because it is unavoidable," he told reporters in Qatar.

Israel goes to the polls on October 27.

Lebanese authorities last year committed to disarming Hezbollah after months of cross-border hostilities culminated in a 2024 war between the group and Israel.

But Hezbollah drew Lebanon into the Middle East war this year by attacking Israel, which responded with heavy strikes and a ground invasion.

In June, Lebanese and Israeli authorities signed a framework agreement which involves the disarmament of Hezbollah, a gradual Israeli withdrawal from territories it occupies, and the deployment of the Lebanese army to the area.

Hezbollah has rejected surrendering its weapons and the direct negotiations with Israel.


Syria: Israeli Forces Shell Quneitra Countryside

An Israeli military vehicle is seen near the border between the Israeli-occupied Golan Heights and Syria, May 4, 2025. REUTERS/Shir Torem/File Photo
An Israeli military vehicle is seen near the border between the Israeli-occupied Golan Heights and Syria, May 4, 2025. REUTERS/Shir Torem/File Photo
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Syria: Israeli Forces Shell Quneitra Countryside

An Israeli military vehicle is seen near the border between the Israeli-occupied Golan Heights and Syria, May 4, 2025. REUTERS/Shir Torem/File Photo
An Israeli military vehicle is seen near the border between the Israeli-occupied Golan Heights and Syria, May 4, 2025. REUTERS/Shir Torem/File Photo

Israeli forces fired several artillery shells on Wednesday at the area around eastern Tell al-Ahmar in the southern Quneitra countryside in southern Syria.

The Syrian Arab News Agency (SANA) said that “occupation forces fired two projectiles that landed on agricultural land around eastern Tell al-Ahmar, causing no injuries".

Israel continues to violate the 1974 Disengagement Agreement through repeated incursions into southern Syria, raids on and arrests of civilians, land bulldozing and shelling, among other attacks, the agency said.

Syria has repeatedly called for Israeli forces to withdraw from its territory, stressing that all measures taken by Israel are null and void and have no legal effect under international law. Damascus has also urged the international community to fulfil its responsibilities and compel Israel to withdraw fully from southern Syria.