x 22347 Sanaa or Sanaa, Department of State, Washington, DC
20521-6330
telephone:
[967] (2) 238-842 through 238-852
FAX:
[967] (2) 251-563
Flag:
three equal horizontal bands of red (top), white, and black; similar to the
flag of Syria which has two green stars and of Iraq which has three green
stars (plus an Arabic inscription) in a horizontal line centered in the
white band; also similar to the flag of Egypt which has a symbolic eagle
centered in the white band

*Yemen, Economy

Overview:
Whereas the northern city Sanaa is the political capital of a united Yemen,
the southern city Aden, with its refinery and port facilities, is the
economic and commercial capital. Future economic development depends heavily
on Western-assisted development of promising oil resources. Former South
Yemen's willingness to merge stemmed partly from the steady decline in
Soviet economic support. The low level of domestic industry and agriculture
have made northern Yemen dependent on imports for virtually all of its
essential needs. Large trade deficits have been compensated for by
remittances from Yemenis working abroad and by foreign aid. Once
self-sufficient in food production, northern Yemen has become a major
importer. Land once used for export crops - cotton, fruit, and vegetables -
has been turned over to growing qat, a mildly narcotic shrub chewed by
Yemenis which has no significant export market. Oil export revenues started
flowing in late 1987 and boosted 1988 earnings by about $800 million.
Economic growth in former South Yemen has been constrained by a lack of
incentives, partly stemming from centralized control over production
decisions, investment allocation, and import choices.
National product:
GDP - exchange rate conversion - $8 billion (1992 est.)
National product real growth rate: NA%
National product per capita:
$775 (1992 est.)
Inflation rate (consumer prices):
100% (December 1992)
Unemployment rate:
30% (December 1992)
Budget:
revenues $NA, expenditures $NA, including capital expenditures of $NA
Exports:
$908 million (f.o.b., 1990 est.)
commodities:
crude oil, cotton, coffee, hides, vegetables, dried and salted fish
partners:
US, EC countries, South Korea, Saudi Arabia
Imports:
$2.1 billion (f.o.b., 1990 est.)
commodities:
textiles and other manufactured consumer goods, petroleum products, sugar,
grain, flour, other foodstuffs