The conflict in Yemen has led to a dramatic 54% contraction in Yemen's real GDP per capita since 2015, plunging most of the population into poverty, according to World Bank’s recent report.
The report named “Yemen Economic Monitor Spring 2024” added “Approximately half of the population, or 17.4 million people, face food insecurity. Economic fragmentation and a Houthi-imposed blockade on oil exports have further strained the economy, reducing fiscal space and hindering growth.
The report found that Yemen's food and nutrition security is severely impacted by multiple factors stemming from the ongoing conflict, economic decline, and structural challenges.
The report also found that conflict has severely impacted human capital in Yemen. Youth mortality rates have increased, life expectancy has declined, and educational attainment is low.
The World Bank report concluded that the conflict has intensified Yemen's fragmentation into two distinct economic zones, each with its own institutions and monetary authorities. This division exacerbates economic disparities and complicates efforts to deliver humanitarian aid and services effectively.