The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Yemen, Economy of

  • Barry Turner
Reference work entry


Yemen is the poorest country in the Middle East and its outlook is unpromising. It has limited resources, including declining oil reserves, little arable land and scarce water supplies. Oil dominates the economy, accounting for 70% of government revenue and more than 90% of export earnings. With one of the highest population growth rates in the world, over 40% of the population lives in poverty, mostly in rural areas. Its problems were aggravated by a 60% increase in food prices in 2007–2008. The economy has also been hampered by long-running political and social unrest, including a civil war from 1990 to 1994.


Crude oil File Riyal 

JEL Classification

O53 R11 
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Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Barry Turner
    • 1
  1. 1.