IMF Expects Yemen to Achieve 2% Economic Growth

The IMF warned that humanitarian assistance continues to fall short of Yemen’s needs. (Photo: EPA)
The IMF warned that humanitarian assistance continues to fall short of Yemen’s needs. (Photo: EPA)
TT
20

IMF Expects Yemen to Achieve 2% Economic Growth

The IMF warned that humanitarian assistance continues to fall short of Yemen’s needs. (Photo: EPA)
The IMF warned that humanitarian assistance continues to fall short of Yemen’s needs. (Photo: EPA)

The International Monetary Fund (IMF) mission expected that Yemen would achieve a modest economic growth of about two percent this year and 3.2 percent in 2023.

However, the Fund called for more reforms, especially with regard to the customs dollar rate, support for the electricity sector, transparency in financial management, and accountability in the use of scarce financial resources.

The announcement came at the end of a visit by an IMF team, headed by Brett Rayner, to Jordan, that met with representatives of the Yemeni government, from Sept. 27 to Oct. 6.

Discussions covered recent economic developments in Yemen, the outlook, and progress on key reforms, a statement read.

“Higher global commodity prices have compounded inflationary pressures and exacerbated food insecurity. Annual inflation in August was estimated at around 45 percent, with food inflation at around 58 percent. Yemen has also faced a decline in wheat import volumes and has been unable to fully substitute for imports from Russia and Ukraine, which constituted around 40 percent of Yemen’s wheat,” the statement quoted Rayner as saying.

The IMF warned that humanitarian assistance continued to fall short of Yemen’s needs, saying: “As a result, food insecurity is on the rise with the UN projecting the number of people in need of humanitarian assistance to reach 23.4 million by end-2022, with 19 million facing acute food insecurity.”

On the other hand, the IMF pointed to “some encouraging developments” that have paved the way to greater macroeconomic stability.

“In particular, the truce has supported a period of relative calm, including reduced conflict casualties and greater exchange rate stability,” the statement underlined.

It continued: “Looking ahead, a more stable exchange rate and the recent decline in global food prices are expected to translate into lower inflation towards the end of the year. Economic output is expected to broadly stabilize with modest economic growth of around 2 percent in 2022 and 3.2 percent in 2023, albeit with considerable uncertainty regarding the evolution of the conflict and availability of external financing.”



Israel Hits Beirut after Rockets Fired from South Lebanon, Warns Govt to Enforce Ceasefire or it Will

People gather at the site of an Israeli strike in southern Beirut on March 28, 2025. (AFP)
People gather at the site of an Israeli strike in southern Beirut on March 28, 2025. (AFP)
TT
20

Israel Hits Beirut after Rockets Fired from South Lebanon, Warns Govt to Enforce Ceasefire or it Will

People gather at the site of an Israeli strike in southern Beirut on March 28, 2025. (AFP)
People gather at the site of an Israeli strike in southern Beirut on March 28, 2025. (AFP)

Israel made good on its threat Friday to strike Beirut after rockets were fired towards its territory, rattling an already fragile truce in Lebanon that had largely ended more than a year of hostilities with Hezbollah.

It was the second time rockets had been launched at Israel from Lebanon since the November ceasefire, and the second time the Iran-backed Hezbollah denied involvement.

After the attack, Israeli Defense Minister Israel Katz said: "If there is no quiet in Kiryat Shmona and the Galilee communities, there will be no quiet in Beirut either."

Hours later, the Israeli military carried out its first strike in the capital's southern suburbs since the ceasefire after urging residents close to a building there to leave, warning they were "near Hezbollah facilities" and "must immediately evacuate".

It said the attack targeted a "site used to store UAVs by Hezbollah's Aerial Unit (127) in the area of Dahieh, a key Hezbollah terrorist stronghold in Beirut", which Israel bombed heavily during its war with the group last year.  

Israel's warning sparked panic in the densely populated area, with parents rushing to pick up their children from schools that quickly shut, AFP correspondents said.  

Heavy traffic clogged roads as many residents tried to flee.  

Katz said the Lebanese government must enforce the ceasefire agreement between Israel and Hezbollah on its side of the border, or Israel would continue to conduct attacks.

"I am sending a clear message to the Lebanese government: If you do not enforce the ceasefire agreement, we will enforce it," he said in a statement after Israeli aircraft hit targets in Beirut.

Israel's military said early Friday two "projectiles" were fired towards Israel, with one intercepted and the other falling inside Lebanon.  

It later announced it was "striking Hezbollah terror targets in southern Lebanon".  

Hezbollah said it "confirms the party's respect for the ceasefire agreement and denies any involvement in the rockets launched today from the south of Lebanon".  

The group's leader, Naim Qassem, had been expected to give a speech in the southern suburbs later Friday, but Hezbollah said the event had now been cancelled.  

Katz said Lebanon's "government bears direct responsibility for any fire toward the Galilee".  

Lebanese Prime Minister Nawaf Salam urged his army chief "to act quickly to... uncover those behind the irresponsible rocket fire that threatens Lebanon's stability" and arrest them.  

- Schools closed -  

The November ceasefire largely ended the fighting between Israel and Hezbollah, although Israel has continued to conduct occasional strikes in southern Lebanon.  

French President Emmanuel Macron called the reported Israeli air strike on Lebanon "unacceptable" and a "violation of the ceasefire".  

France is on the committee tasked with overseeing the ceasefire.  

Friday's rocket fire came after Israeli strikes Thursday killed six people in the south, with Israel saying it had targeted Hezbollah members.  

NNA reported Israeli attacks in several parts of the south Friday. It said a strike on Kfar Tebnit southeast of Nabatiyeh killed one person and wounded 18, including three children.  

It also reported shelling in Naqoura, where the UN peacekeeping mission is based.  

UN special envoy for Lebanon Jeanine Hennis-Plasschaert called the flare-up "deeply concerning" and urged restraint.  

"A return to wider conflict in Lebanon would be devastating for civilians on both sides of the Blue Line and must be avoided at all costs," she said.  

The NNA also reported raids on the Jezzine region north of the Litani River, about 30 kilometers (20 miles) north of the border with Israel.  

Schools closed in the Nabatieh area, an AFP correspondent said, as did some in Tyre which was hit by a deadly Israeli strike last weekend.  

"I decided to bring my children to school in spite of the situation, but the administration told me they had closed it after the Israeli threats and I had to take them back home," father of four Ali Qassem told AFP.  

- Escalation -  

Hezbollah began firing rockets at Israel on October 8, 2023 in support of its ally Hamas following the Palestinian group's unprecedented attack on southern Israel that sparked the war in Gaza.  

The cross-border hostilities ultimately escalated into all-out war, with Israel conducting an intense bombing campaign in Lebanon and sending in ground troops.  

The truce brought a partial Israeli withdrawal, although its troops still hold five positions in south Lebanon that are deemed strategic, even after the pullout deadline.  

Last weekend saw the most intense escalation since the truce, with Israeli strikes in the south after rocket fire killing eight people, according to Lebanese officials.  

Hezbollah had also denied any involvement in that rocket attack, calling Israel's accusations "pretexts for its continued attacks on Lebanon".  

Under the ceasefire, Hezbollah was to pull its forces north of the Litani, and dismantle any remaining military infrastructure in the south.  

Israel has also recently resumed intensive military operations in Gaza, shattering weeks of relative calm brought on by a January ceasefire with Hamas.