## IMF Staff Concludes Visit to Yemen

_IMF News, January 23, 2025_

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**Canonical URL:** [IMF Staff Concludes Visit to Yemen](https://www.imf.org/en/news/articles/2025/01/23/pr25015-yemen-imf-staff-concludes-visit)

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## Bibliographic details
- Published: January 23, 2025

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### Situation overview
- The ongoing regional conflict has deepened Yemen’s humanitarian and economic conditions, leading to further contractions in GDP and rising inflation.
- Declining aid and disrupted humanitarian operations have left over 17 million people facing food insecurity, widespread malnutrition, and a rise in preventable diseases.
- Fiscal and external positions remain under strain: reserves are critically low and arrears continuing to grow.
- The significant depreciation of the Yemeni rial amid halted oil exports and limited external financing contributed to contractions in GDP and real incomes in 2024.

### Mission details and engagements
- Press Release No. 25/015
- Date of statement: January 23, 2025
- IMF team led by Ms. Esther Pérez Ruiz conducted a mission in Amman, Jordan with the Yemeni authorities from January 19 to 23, 2025.
- The mission engaged with international partners to galvanize support and align efforts in support of Yemen.
- Media contact: PRESS OFFICER: Wafa Amr; Phone: +1 202 623-7100; Email: MEDIA@IMF.org; @IMFSpokesperson

### Economic outlook and risks
- The ongoing political stalemate clouds Yemen’s near-term economic outlook, with the economy still expected to contract in 2025.
- The recently announced ceasefire in Gaza has cautiously raised hopes for an easing of regional geopolitical tensions; capitalizing on these developments could improve the outlook.
- Key factors weighing on the economy include halted oil exports, limited external financing, currency depreciation, and rising inflation.

### Key priorities and policy recommendations
- Continue to enhance fiscal discipline to create space for necessary capital and social spending.
- Unify the currency to reduce economic divisions, simplify trade and finance, and support the resolution of liquidity constraints.
- Resume oil exports — oil exports generated more than half of government revenues before their suspension in 2022 — to revive growth, generate revenue, and increase foreign reserves.
- Strengthen tax and customs administration to offset revenue shortfalls; efforts in 2024 have helped contain government spending and limit monetary financing of the budget and inflationary pressures.
- Prioritize electricity sector reforms to support economic recovery and social needs.
- Preserve financial sector stability and facilitate essential capital inflows through enhanced oversight and adherence to international standards, particularly regarding AML/CFT measures.
- Implement more consistent and predictable FX auctions to improve efficiency, enhance price discovery, and stabilize the exchange rate.
- Enhance data collection and compilation to improve transparency and guide economic policy.

### External assistance and IMF role
- External financing will be essential for maintaining macroeconomic stability, addressing humanitarian needs, and supporting the reform process.
- Predictable and consistent financial support would provide the policy space necessary for implementing critical reforms.
- The IMF will continue to help Yemen strengthen its policies and institutions and the mission engaged with international partners to galvanize support.

*IMF Communications Department — End-of-Mission press release, January 23, 2025.*

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## References

- [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)

_Source: https://www.imf.org/en/news/articles/2025/01/23/pr25015-yemen-imf-staff-concludes-visit_