Yemen Economy

Economy

Yemen, one of the poorest countries in the Arab world, has reported strong growth since 2000, but its economic fortunes depend mostly on oil. Yemen has embarked on an IMF-supported structural adjustment program designed to modernize and streamline the economy, which has led to substantial foreign debt relief and restructuring. Yemen has worked to maintain tight control over spending and to implement additional components of the IMF program, but a high population growth rate and internal political dissension complicate the government's task. Plans include a diversification of the economy, encouragement of tourism, and more efficient use of scarce water resources.