Yemen has achieved an annual Gross Domestic Product (GDP) growth rate of 3.5 percent since unification in 1990. Despite this fact Yemen is still considered to be one of the Least Developed Countries (LDCs) according to the international classification of the term, which takes into account the high population growth and pressure on the country’s limited resources. The continuing period of political stability following the civil war in 1994 has however provided a boost to the country’s investment and economic activity.
The Government’s reform programme has focused on inflation control, trade liberalisation, reduction in subsides, as well as financial sector improvements. All of these factors have combined to expand growth and development opportunities. Yemen’s economic income, nonetheless, depends mostly on oil.
A view of spices and nuts shop in the Old City of Sana'a ancient market
In terms of human development Yemen ranked 154 out of 186 countries, according to the 2011 Human Development Report Index issued by the United Nations Development Programme (UNDP). According to government reports, poverty is a nation-wide phenomenon. The Yemen LNG project will be a key factor in the success of the government’s development policy setting the foundations of future investment and economic growth.