Yemen Resident Representative Site
Resident Representative Office in Yemen
This web page provides information on the activities of the Office, views of the IMF staff, and the relations between Yemen and the IMF. Additional information can be found on Yemen and IMF country page, including official IMF reports and Executive Board documents in English that deal with Yemen.
News — Highlights
Yemen and The IMF
Republic of Yemen: 2014 Article IV Consultation and Request for a Three-Year Arrangement Under the Extended Credit Facility-Staff Report; Press Release; and Statement by the Executive Director for the Republic of Yemen
September 24, 2014
Series: Country Report No. 14/276
September 24, 2014
On September 2, the IMF approved a $553 million loan for Yemen to support the country’s plans to strengthen fiscal and external positions, boost growth, and fight poverty by reducing inefficient fuel subsidies, improving governance, and increasing monthly allowances paid by the Social Welfare Fund.
Press Release: IMF Executive Board Approves a 3-Year, US$552.9 Million Extended Credit Facility Arrangement with Yemen
Regional Economic Outlook Update: Middle East & Central Asia
Growth has been tepid across the Middle East and North Africa, Afghanistan, and Pakistan (MENAP) region. In 2013, declines in oil production held back growth in the oil-exporting countries. Weak private investment, amid political transitions and conflict, continued to take a toll on economic activity in the oil-importing countries. Growth is expected to strengthen this year in line with an improved global outlook. However, weak confidence and, in some cases, large public deficits will continue to weigh on the region's economic prospects. Deeper economic transformations are necessary to ensure robust and inclusive growth and creation of enough jobs for the rapidly-growing labor force.
Economic growth in the Caucasus and Central Asia (CCA) is expected to decline from 6.5 percent in 2013 to 6 percent in 2014, mainly because of weakening growth momentum in emerging market trading partners (particularly, China, Russia, and Turkey) and a temporary decline in oil output growth in Kazakhstan. Risks remain tilted to the downside. In particular, a slowdown in emerging market trading partners may weaken exports, foreign direct investment, and remittances. Policy priorities center on rebuilding buffers and increasing exchange rate flexibility to help adjust to unanticipated shocks. Stronger macroeconomic frameworks would provide a more credible anchor to economies. Rapid credit growth in some countries calls for strengthening the prudential policies to ensure the continued soundness of financial institutions. Structural reforms to improve the business environment and governance, as well as closer regional cooperation, would enable CCA countries to achieve their goal of becoming dynamic emerging market economies.