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)
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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.”



Hamas Says Ready to Free All Hostages at Once in Gaza Truce Phase Two

The sun sets behind heavily damaged residential buildings in Jabalia in the northern Gaza Strip on February 17, 2025, as people return to northern parts of Gaza during a current ceasefire deal in the war between Israel and Hamas. (AFP)
The sun sets behind heavily damaged residential buildings in Jabalia in the northern Gaza Strip on February 17, 2025, as people return to northern parts of Gaza during a current ceasefire deal in the war between Israel and Hamas. (AFP)
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Hamas Says Ready to Free All Hostages at Once in Gaza Truce Phase Two

The sun sets behind heavily damaged residential buildings in Jabalia in the northern Gaza Strip on February 17, 2025, as people return to northern parts of Gaza during a current ceasefire deal in the war between Israel and Hamas. (AFP)
The sun sets behind heavily damaged residential buildings in Jabalia in the northern Gaza Strip on February 17, 2025, as people return to northern parts of Gaza during a current ceasefire deal in the war between Israel and Hamas. (AFP)

Hamas signaled on Wednesday that it was willing to free all remaining hostages held in Gaza in a single swap during the next phase of an ongoing ceasefire.  

Israel and Hamas are currently in the process of implementing phase one of the fragile truce, which has held since taking effect on January 19 despite accusations of violations on both sides.  

Israel's foreign minister said on Tuesday that talks would begin "this week" on the second phase, which is expected to lay out a more permanent end to the war.

"We have informed the mediators that Hamas is ready to release all hostages in one batch during the second phase of the agreement, rather than in stages as in the current first phase," senior Hamas official Taher al-Nunu told AFP.

He did not clarify how many hostages were currently being held by Hamas or other armed groups.  

Nunu said this step was meant "to confirm our seriousness and complete readiness to move forward in resolving this issue, as well as to continue steps towards cementing the ceasefire and achieving a sustainable truce".  

Under the ceasefire's first phase, 19 Israeli hostages have been released so far in exchange for more than 1,100 Palestinian prisoners freed from Israeli jails in a series of Red Cross-mediated swaps.  

Wednesday's offer came after Israel and Hamas announced a deal for the return of all six remaining living hostages eligible for release under phase one in a single swap this weekend.  

Hamas also agreed on Tuesday to return the bodies of eight dead hostages in two groups this week and next.  

After the completion of the first phase, 58 hostages will remain in Gaza.  

The armed wing of Palestinian Islamic Jihad said on Wednesday that it would release the body of Israeli hostage Oded Lifshitz on Thursday. The group said Lifshitz was one of the hostages killed during Israeli strikes on Gaza.  

- 'Room to pressure Hamas' -  

Muhammad Shehada, of the European Council on Foreign Relations, said that after more than a year of devastating Israeli assault in Gaza, "Hamas wants to prevent the war resuming at any cost", albeit with some "red lines".  

"And one of those red lines is that they should continue to exist, basically, whereas (Israeli Prime Minister Benjamin) Netanyahu's position is that they should dismantle themselves," he said.  

Since the start of the war, Netanyahu has vowed to destroy Hamas's capacity to fight or govern, something the group has rejected.  

But the appearance that Washington is now in complete alignment with Netanyahu's government, as displayed by US Secretary of State Marco Rubio's visit this week, strengthened the Israeli premier's hand in negotiations, according to Michael Horowitz, an expert at the risk management consultancy Le Beck International.  

It gives Netanyahu "more room to pressure Hamas", Horowitz said, adding that US President Donald Trump "prefers that the agreement moves forward, but he's leaving the field open to Netanyahu... as long as the ceasefire is maintained".  

- 'Held onto hope' -

Among the bodies Hamas said it would hand over on Thursday are those of Shiri Bibas and her two young sons, Kfir and Ariel, who have become national symbols in Israel of the hostages' ordeal.  

The boys' father Yarden Bibas was taken hostage separately on October 7, 2023, and was released alive during an earlier hostage-prisoner swap.  

While Hamas said Shiri Bibas and her boys were killed in an Israeli air strike early in the war, Israel has never confirmed this, and many supporters remain unconvinced of their deaths, including members of the Bibas family.  

"I ask that no one eulogize my family just yet. We have held onto hope for 16 months, and we are not giving up now," the boys' aunt, Ofri Bibas, wrote on Facebook late Tuesday following Hamas's announcement.  

Israeli authorities have confirmed that the remains of four hostages are due to be returned on Thursday, although they have not officially named them.  

The International Committee of the Red Cross, which has acted as go-between in the exchanges, called for a respectful handover of the hostages' remains.  

"We once again call for all releases to be conducted in a private and dignified manner, including when they tragically involve the deceased," it said.  

Hamas and its allies took 251 people hostage during the October 7, 2023 attack on Israel, of whom 70 remain in Gaza, including 35 the Israeli military says are dead.  

The attack resulted in the deaths of 1,211 people, mostly civilians, according to an AFP tally of Israeli official figures.  

Israel's retaliatory campaign has killed at least 48,297 people in Gaza, the majority of them civilians, according to figures from the health ministry in the Hamas-run territory that the United Nations considers reliable.  

Since the war began, Israeli forces have detained hundreds of Gazans, some of whom have been released in previous rounds of hostage-prisoner exchanges.