{
  "title": "IMF Staff Concludes Visit on Yemen",
  "publication": "IMF News, June 3, 2021",
  "sourceUrl": "https://www.imf.org/en/news/articles/2021/06/02/pr21156-yemen-imf-staff-concludes-visit-on-yemen",
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  "summary": "\"The six-year long conflict has crippled Yemen’s economy, divided the country, and resulted in an acute economic and humanitarian crisis, which has been compounded by the COVID-19 pandemic.\"",
  "publishDate": "2021-06-03",
  "sections": [
    {
      "heading": "Context and crisis overview",
      "content": "- \"The six-year long conflict has crippled Yemen’s economy, divided the country, and resulted in an acute economic and humanitarian crisis, which has been compounded by the COVID-19 pandemic.\"\n- External support has \"collapsed, foreign exchange reserves are nearly exhausted, and pressures on the budget have increased.\"\n- COVID-19 effects highlighted: \"a sharp decline in remittances and lower oil prices and revenues.\"\n- The UN estimates \"more than 24 million people—some 80 percent of the population—are now in need of humanitarian assistance.\"\n- Conflict-related institutional impacts: \"weakened and fragmented Yemen’s policy capacity, limiting the authorities’ ability to respond effectively to the crisis.\""
    },
    {
      "heading": "Economic outlook and projections",
      "content": "- Near-term prospects: \"Absent a quick resolution to the conflict, Yemen’s near-term economic prospects are dim.\"\n- Growth and contraction projections:\n  - \"Output is expected to contract a further 2 percent in 2021 after declining 8.5 percent in 2020.\"\n- Inflation and exchange rate pressures:\n  - \"Continued financing of the fiscal deficit by the central bank and resultant exchange rate depreciation, together with rising international food and fuel prices, will contribute to further rapid inflation.\"\n- Balance of payments and reserves: \"Rising international prices will also increase pressure on the balance of payments and reserves.\"\n- Critical imports: \"Significant additional external financing will be needed just to maintain a basic level of critical imports.\""
    },
    {
      "heading": "Key findings from the mission",
      "content": "- Primary drivers of the crisis: conflict, collapse of external support, exhausted reserves, fiscal pressures, COVID-19 impacts on remittances and oil revenues.\n- Humanitarian severity: more than 24 million people—some 80 percent of the population—need humanitarian assistance.\n- Institutional constraint: fragmentation and weakened policy capacity limit effective crisis response."
    },
    {
      "heading": "Policy recommendations and required measures",
      "content": "- Mobilize additional resources:\n  - \"Securing additional external support would help to close the large financing gap, thereby curbing depreciation and inflation.\"\n  - \"Significant additional external financing will be needed just to maintain a basic level of critical imports.\"\n- Raise domestic revenues:\n  - \"Raising domestic revenues would support macroeconomic stability by reducing the need for financing from the central bank.\"\n  - Revenue increases would also \"allow the authorities to meet urgent social spending needs, including on basic goods, healthcare, and education.\"\n- Rebuild institutions and governance:\n  - \"To stabilize the macroeconomy and underpin a recovery, Yemen needs to mobilize additional resources and accelerate the process of rebuilding institutions.\"\n  - Rebuilding institutional and policy capacity through \"strengthened governance frameworks, and increased transparency and accountability\" would \"help to catalyze greater financial assistance and underpin economic growth.\"\n- Conflict resolution and policy coordination:\n  - \"Resolving the conflict and steps to coordinate policies across Yemen, including on monetary, exchange rate, financial and fiscal issues, would help to end the economic and humanitarian crisis.\""
    },
    {
      "heading": "Mission details and statement",
      "content": "- Mission type and leadership: An IMF team led by Brett Rayner conducted a virtual mission with the Yemeni authorities.\n- Mission dates: May 24-June 3.\n- Publication date: June 3, 2021.\n- IMF contact: PRESS OFFICER: Wafa Amr — Phone: +1 202 623-7100 Email: MEDIA@IMF.org\n- Note on nature of release: \"End-of-Mission press releases include statements of IMF staff teams that convey preliminary findings after a visit to a country. The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board. This mission will not result in a Board discussion.\"\n- Closing remark from mission: \"The mission team would like to thank the authorities for the productive discussions and looks forward to continued close engagement.\"\n\nIMF Staff Concludes Visit on Yemen — Press Release No. 21/156, June 3, 2021.\n\n---\n\n\n References\n\n- IMF COVID-19 Hub\n- Policy Tracker\n- Financial Assistance\n- Questions & Answers\n- Republic of Yemen and the IMF\n- Press Releases\n- PRESS CENTER\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2021/06/02/pr21156-yemen-imf-staff-concludes-visit-on-yemen"
    }
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    "Published: June 3, 2021",
    "\"The six-year long conflict has crippled Yemen’s economy, divided the country, and resulted in an acute economic and humanitarian crisis, which has been compounded by the COVID-19 pandemic.\"",
    "External support has \"collapsed, foreign exchange reserves are nearly exhausted, and pressures on the budget have increased.\"",
    "COVID-19 effects highlighted: \"a sharp decline in remittances and lower oil prices and revenues.\"",
    "The UN estimates \"more than 24 million people—some 80 percent of the population—are now in need of humanitarian assistance.\"",
    "Conflict-related institutional impacts: \"weakened and fragmented Yemen’s policy capacity, limiting the authorities’ ability to respond effectively to the crisis.\"",
    "Near-term prospects: \"Absent a quick resolution to the conflict, Yemen’s near-term economic prospects are dim.\"",
    "Growth and contraction projections:",
    "Inflation and exchange rate pressures:",
    "Balance of payments and reserves: \"Rising international prices will also increase pressure on the balance of payments and reserves.\"",
    "Critical imports: \"Significant additional external financing will be needed just to maintain a basic level of critical imports.\"",
    "Primary drivers of the crisis: conflict, collapse of external support, exhausted reserves, fiscal pressures, COVID-19 impacts on remittances and oil revenues.",
    "Humanitarian severity: more than 24 million people—some 80 percent of the population—need humanitarian assistance.",
    "Institutional constraint: fragmentation and weakened policy capacity limit effective crisis response.",
    "Mobilize additional resources:",
    "Raise domestic revenues:",
    "Rebuild institutions and governance:",
    "Conflict resolution and policy coordination:",
    "Mission type and leadership: An IMF team led by Brett Rayner conducted a virtual mission with the Yemeni authorities.",
    "Mission dates: May 24-June 3.",
    "Publication date: June 3, 2021.",
    "IMF contact: PRESS OFFICER: Wafa Amr — Phone: +1 202 623-7100 Email: MEDIA@IMF.org",
    "Note on nature of release: \"End-of-Mission press releases include statements of IMF staff teams that convey preliminary findings after a visit to a country. The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board. This mission will not result in a Board discussion.\"",
    "Closing remark from mission: \"The mission team would like to thank the authorities for the productive discussions and looks forward to continued close engagement.\"",
    "[IMF COVID-19 Hub](https://www.imf.org/en/Topics/imf-and-covid19)",
    "[Policy Tracker](https://www.imf.org/en/Topics/imf-and-covid19/Policy-Responses-to-COVID-19)",
    "[Financial Assistance](https://www.imf.org/en/Topics/imf-and-covid19/COVID-Lending-Tracker)",
    "[Questions & Answers](https://www.imf.org/en/About/FAQ/imf-response-to-covid-19)",
    "[Republic of Yemen and the IMF](http://www.imf.org/external/country/YEM/index.htm)",
    "[Press Releases](https://www.imf.org/en/news/searchnews)",
    "[PRESS CENTER](http://presscenter.imf.org/)",
    "[https://www.imf.org/en/home](https://www.imf.org/en/home)"
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