After contracting by more than 12% in 2011 due to the political upheaval in the country, Yemen’s real GDP growth is estimated to have risen by 2.4% in 2012, reflecting an easing of supply bottlenecks and utilization of idle capacity, the IMF said on 31 July, following the conclusion of Article IV consultations.
GDP growth in 2013 is projected at 6%. But the recovery remains fragile and considerable challenges remain, despite the macroeconomic stability achieved in 2012. Oil production declined further during 2012 due to continued sabotage of pipelines. Average inflation declined to 9.9% in 2012 from 19.5% in 2011, “reflecting the appreciation of the rial to its pre-crisis level, the moderation of international food prices, and the easing of supply shortages,” the IMF says. (CONTINUED - 731 WORDS)