World Bank's Yemen Economic Monitor records a 1.5 per cent fall in real GDP and projects a further 0.5 per cent contraction
15 October 2026
Yemen's economy remains under strain, having contracted again in 2025 and now facing additional pressures linked to the conflict in the Middle East, the World Bank said on 21 May 2026.
The Spring 2026 edition of the Yemen Economic Monitor, titled Pushing Against the Tide, finds that national real GDP declined by 1.5 per cent in 2025 and is projected to contract by a further 0.5 per cent in 2026.
Oil exports are still blocked, and funding for the UN Response Plan covered only 28 per cent of needs, down from 56.5 per cent in 2024.
Revenues fell to 5.6 per cent of GDP, driven by reduced external grants.
The Yemeni rial in Aden appreciated sharply in August 2025 and has since stabilized, supported by Central Bank measures and external inflows including Saudi financial support.
Nearly three-quarters of the population is estimated to live below the poverty line.
Dina Abu-Ghaida, World Bank Group Country Manager for Yemen, said the economy has limited buffers to absorb new shocks.
In plain words
Yemen Economic Monitor World Bank Yemen Economic Monitor — The World Bank's periodic review of Yemen's economy, published twice a year.
Rial Yemeni rial — Yemen's currency, which trades at different rates in Aden and in Houthi-held areas.