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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)
    Aden - Mohammed Nasser
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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.”

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Arab World

Northern Gaza Residents: Stuck in Open Air Living

Gazan families receive no more than 50 liters of water daily in Beit Lahia Camp (AP)
Gazan families receive no more than 50 liters of water daily in Beit Lahia Camp (AP)
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Northern Gaza Residents: Stuck in Open Air Living

Gazan families receive no more than 50 liters of water daily in Beit Lahia Camp (AP)
Gazan families receive no more than 50 liters of water daily in Beit Lahia Camp (AP)

The return of Palestinian refugees from southern Gaza to the north has been difficult, especially due to the extensive damage to homes and infrastructure in the area. Many residents, who had hoped for better conditions than life in tents, have found little relief.

After months of living in tents during the Israeli conflict, they returned to the north only to find few homes available, with some even unable to find space to set up their tents.

The return of nearly 800,000 displaced people to northern Gaza has created significant challenges for the Hamas-led Gaza government. The situation has revealed unexpected difficulties, particularly as Israel has not yet kept its promise to deliver much-needed relief supplies, such as tents and caravans.

The sight of massive destruction has overshadowed the living conditions in Jabalia Camp and the towns of Beit Lahia and Beit Hanoun for many returning residents.

This has forced local authorities, according to sources speaking to Asharq Al-Awsat, to expand bulldozing efforts in several key areas, increasing the space available for tents to shelter residents.

However, the task has been complicated by the difficulty of acquiring the necessary equipment to clear rubble and debris.

Mohammed Abu Obeid, a resident of Jabalia Camp, told Asharq Al-Awsat that the situation worsened when authorities were unable to provide sufficient water for residents.

This has led people to rely on water deliveries via trucks, which transport large amounts from Gaza City to the camp. The goal is to provide each family with approximately 50 liters of water daily, but Abu Obeid noted that this amount is hardly enough.

Abu Obeid pointed out that residents are unable to find any nearby power sources. As night falls, they are forced to remain in their tents or, for those who still have homes or managed to salvage a room from heavily damaged buildings, stay there with their families.

“We didn’t expect life to be this grim, this full of hell,” he remarked.

Suhad Abu Hussein, a resident of the camp, shared that she spent her first night back in northern Gaza sleeping in the open.

She waited until the second day, when technical teams managed to clear a small portion of rubble which allowed them to begin setting up available tents.

Hussein explained that she is currently living in a tent just three meters in size. However, she faces significant challenges due to the lack of water and any power source, leaving residents in complete darkness without even basic street lighting.

Gaza’s municipality has warned that the lack of services will make life even harder for displaced people returning to their areas.

They explained that the water supply only covers 40% of the city, and the water available doesn’t meet the residents’ needs due to damage to water networks. More than 75% of the city's central wells have been destroyed.

The municipality stressed that it cannot provide even basic services to the displaced without heavy machinery. It urgently needs equipment to repair wells and sewage networks. Despite limited resources, efforts continue to clear streets and remove rubble to help the displaced return and allow residents to move around.

Israel has blocked the entry of heavy machinery, tents, caravans, and other supplies. Hamas has been in talks with mediators to address these restrictions.

Ahmed Al-Asi, a young man from Beit Lahia, affirmed to Asharq Al-Awsat there are no bakeries in his town or in Jabalia Camp.

He has to travel more than 6 kilometers to Gaza City’s Nasr neighborhood every day to buy bread for his family of 18, spending about 40 shekels ($12) daily.