[03/04/2026 05:58]

WASHINGTON – SABA
The Executive Board of the International Monetary Fund (IMF) has approved the results of the Article IV consultations with the Yemeni government after an 11-year hiatus, affirming that the resumption of consultations reflects improved institutional capacity and data production.

In a statement, the IMF Executive Board praised the efforts made by the Yemeni government, which have contributed to stabilizing the economy and initiating a gradual recovery from the deep recession that followed the suspension of oil exports in 2022.

The pace of economic contraction has slowed, and both fiscal and external pressures have eased. However, the Board noted that the war in the Middle East is expected to negatively impact Yemen’s economy this year, while risks to the outlook remain significant.

The statement also highlighted the importance of resuming these consultations amid Yemen’s severe humanitarian crisis and major macroeconomic challenges caused by the ongoing conflict.

It added that the authorities’ commitment to revenue mobilization and strengthening financial governance contributes to the provision of essential public services. Adopting a market-based exchange rate, along with energy and business environment reforms, engagement with creditors, and continued external financing, will collectively support Yemen’s economic recovery and social stability.

At the same time, the statement projected that prioritizing essential spending would temporarily affect the fiscal balance. The economy is expected to gradually regain momentum starting in 2027, with declining inflation, improving real incomes, eased fiscal consolidation, and expansion in remittances and non-oil exports under the agricultural plan adopted by the authorities.

The statement further noted: “Over time, increased government revenues are expected to support essential public services and imports, thereby alleviating the severity of the humanitarian crisis.”

---