Houthi Militia’s Coup Effect on Yemeni Economy
On September 21, 2014, the storming the capital Sana’a by the Houthi was like a pandemic that hit and destroying every beautiful in Yemen, causing huge destruction, a war that undermined state institutions and the collapse of the economy, leaving one of Yemen’s worst disasters.
Moreover, it is one of the most severe humanitarian crises in the world. This came after a state of optimism resulting from the success of the National Dialogue Conference in mid-2014, which promises the start of drafting a new constitution and the relative improvement in the economy. In the words of World Bank Director in Yemen Wael Zakout: “the Yemen economy came out of intensive care in 2014 , But it is still on the bed of illness”.
According to the report of the Center for Economic Studies and Media, the Yemeni rail has lost 176 percent of its value since the coup of the Houthi militia, and 12 percent of its value during the first five months of 2020 alone, compared to the exchange rate of the rail against the dollar last December 2019.
A World Bank report late last year revealed that GDP contracted by a cumulative 39 percent from the end of 2014 to the end of 2019.
In an earlier report, the Central Bureau of Statistics said Yemen’s total losses in gap exceeded $54.7 billion in four years from 2015 to 2018, and poverty rates rose to more than 90 percent at the end of 2018, compared to 49 percent in 2014.
Average per capita output income shrank from about $1,287 in 2014 to $385 in 2018, with a cumulative change rate of 70 per cent, according to the Central Bureau of Statistics.