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FINANCIAL NEWS
Yemen’s 2011 inflation will probably go up to 30%
14 Jul 2011
(MENAFN) International Monetary Fund’s (IMF) head of mission to Yemen, Hassan Al-Atrash, said that since the country struggled with political unrest, Yemen’s 2011’s inflation might increase 30 percent, reported Arab News.
Al-Atrash said that a damage to an oil pipeline added to Yemen’s deteriorating economy, leading to a fuel, food, water and electricity shortages that would affect its people.
He also said that in 2011, the country’s fiscal deficit would probably surge to around 10 percent of gross domestic product (GDP), up from April’s estimations of 6.4 percent and 4.0 percent last year.
It is worth noting that once the political situation in Yemen is improved, the IMF would provide the country with a new financial aid. Last August, the agency approved a USD370 million loan for Yemen, nevertheless, only one disbursement of around USD50 million has been made.
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