World Bank: Houthi Blockade on Oil Exports in Yemen Worsens Food Security

The World Bank said that the Houthi blockade on oil exports has led to the deterioration of food security in Yemen to unprecedented levels.

It stressed that Yemen’s economy continues to confront deepening challenges as prolonged conflict, political fragmentation, and escalating regional tensions drive the country into an even more severe humanitarian and economic crisis.

In the Fall edition of its Yemen Economic Monitor (YEM) entitled “Confronting Escalating Challenges,” the WB revealed that Yemen’s GDP is projected to contract by 1% in 2024, following a 2% decline in 2023, exacerbating the 54% drop in real GDP per capita since 2015.

It then affirmed that the conflict has pushed most Yemenis into poverty, while food insecurity has reached historic levels, with over 60% of the population now facing inadequate access to food.

The report also underscored the significant economic hardships caused by the continued Houthi blockade on oil exports, which contributed to a 42% drop in fiscal revenues for the internationally recognized government in the first half of 2024, preventing it from providing essential services to the population.

The suspension of the government oil exports, combined with a heavy reliance on imports, has intensified external pressures, leading to a depreciation of the Yemeni Rial in the Aden market from 1,619 per US dollar in January 2024 to 1,917 by the end of August, it noted.