Yemen Economy in Ruins After Four Years of War

The war in Yemen has now lasted for more than 4 years.

The conflict has had an absolutely disastrous effect on the economy and broader humanitarian situation in Yemen. The current situation has long passed crisis levels, and millions of people are at risk for starvation, which has already claimed countless lives.

The current situation in Yemen is dire, as the country’s economy has shrunk by a disastrous 50% since 2015. During the same period, the price of food has more than doubled, while mass starvation has gripped most of the country. Tens of thousands have already died due to both violence and starvation, among many other causes as the humanitarian situation remains horrific.

The 50% of the Yemeni economy that still exists is barely holding the country together. More than two-thirds of small and medium-sized businesses have laid off half of their employees, according to Al Jazeera.

Unfortunately, there is no definitive end to the war in sight at the moment. Peace talks have been taking place in Sweden, but it would appear that the parties to the conflict are not yet satisfied. The Iran-backed Houthi rebels who have been fighting government forces for years are demanding a political solution to the conflict that includes a new constitution and the decentralization of power. The Yemeni government, which is backed by a Saudi-led coalition, does not plan on meeting their demands. Most analysts share in the consensus that neither side currently has the willingness or readiness to make concessions and end the conflict.

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5 years ago
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