Abstract
Yemen as an oil exporting country with relatively larger populations and modest oil resources has witnessed a sharp deterioration in their public finances and current account balances in 2008-2009, as a result of financial crisis mainly lower oil prices leading to a weakening of the economy.This study targeting the global crisis impact on Yemen’s economy, by analysis the macroeconomic indicators to understand how much the government achieve in term of economic efficiency which reflected in economic growth, full employment, trade balance and price stability. Yemen has less developed monetary banking system and relatively minor exposure to foreign banks, which result in fair impact from the financial global crisis. However, the government can’t sustain exchange rate and stabilize the price the non-oil declined by 3% of the determined gross domestic product (GDP) in 2009, from 6.98% in 2008. This paper found that the crisis has negative impact on the government revenues, trade balance and significant reduction in foreign direct investment (FDI), caused reduction in spending and widened the deficits in the budget and the balance of payments. Real growth has been achieved relatively high rates and through precisely the crisis. The revenues declined more than 10% in 2009 and government expenditures reduced with regards to decline in oil revenues and service delivery. The government responses were successful in the monetary policy side, but with lots of blurred in the fiscal policies which was subject for critical discussion and assessment. This paper concluded that to improve the overall Yemen’s economy and avoid any unpleasant economic event in the future, government should have a strategic plan to achieve sustain growth rate by diverse outcome resources, support the private sector and encourage investments.
Highlights
The Great Recession of 2008-2009 was considered as a systemic crisis where it was characterize by large changing of gross domestic product (GDP), emergency government intervention required
GDP is one of the most significant indicator to measure the country economic performance, Based on Yemen’s Central Statistics Organization (CSO) data, real growth in the national economy strengthened from 4.5% in 2008 and 5.8 % in 2009 to 7.1% in 2010, while the real output (GDP at constant price) decreased from 20.5% in 2008 to -6.1% in 2009 after that it has been improved to 18.04 % in 2010
The global crisis during 2008–2009 hit the Yemen economy as one of the developing countries, it overcome the worst part of the crisis with sustain GDP growth and less effect in unemployment rate
Summary
The Great Recession of 2008-2009 was considered as a systemic crisis where it was characterize by large changing of GDP, emergency government intervention required. The global recession force the government to introduce and implement many fiscal and monetary policies and highlight the importance of macroeconomic and microeconomic research to sustain an economic system. GDP is one of the most significant indicator to measure the country economic performance, Based on Yemen’s Central Statistics Organization (CSO) data, real growth in the national economy strengthened from 4.5% in 2008 and 5.8 % in 2009 to 7.1% in 2010, while the real output (GDP at constant price) decreased from 20.5% in 2008 to -6.1% in 2009 after that it has been improved to 18.04 % in 2010. The 2011 reduction in Real GDP to -14% due political instability in the country see figure (2)
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
