The Houthis' targeting of oil export ports in the east of the country led to a doubling of the economic burdens on the Yemeni government and a decrease in its financial revenues by 42%.

In a recent report by the World Bank, viewed by Al-Ain News, it said that due to the continued blockade imposed by the Houthi militias on oil exports in the east of the country, it led to a decline in the government’s financial revenues by 42 percent in the first half of 2024.

The report added that Yemen is facing great economic difficulties that have weakened the ability to provide basic services to the population.

The report published by the “Yemen Economic Observatory” under the title “Facing Escalating Challenges,” during which the World Bank warned that the prolonged conflict, “political fragmentation,” and escalating regional tensions are pushing Yemen to “the slide of a more severe humanitarian and economic crisis.” And dangerous.”

The bank noted that “the government’s cessation of oil exports, coupled with heavy reliance on imports, led to intensified external pressures, causing the value of the Yemeni currency to decline significantly.”

Food security

According to the report, the conflict has pushed most Yemenis to the brink of poverty, while food insecurity has reached unprecedented levels, with more than 60% of the population suffering from weak ability to obtain adequate food.

The international report indicated that the living conditions of the majority of the population have deteriorated significantly since 2023.

Telephone surveys conducted by the World Bank last July indicated that severe food deprivation had more than doubled in some Yemeni governorates.

GDP contraction

The bank also expected that Yemen's gross domestic product would contract by 1% in the current year 2024, after declining by 2% last year.

This contraction will lead to a further deterioration in the real GDP per capita, with the rate of decline reaching 54% since 2015.

International navigation tensions

The World Bank also touched on, in its report, the Houthi terrorist militia attacks in the Red Sea, which exacerbated the economic situation and increased shipping costs and commodity prices, as it stressed that “regional tensions, especially in the Red Sea, led to a decline in shipping traffic by more than 60% across The strategic Bab al-Mandab Strait and the Suez Canal

The report warned of Yemen’s economic prospects for the coming year 2025, which it described as “still bleak,” due to the continuing regional and internal conflict that threatens to “deepen fragmentation” in the country and exacerbate its crisis on the social and humanitarian levels.

The World Bank continued, saying: “Reaching a lasting peace agreement could stimulate rapid economic recovery, which would pave the way for Yemen to receive vital foreign aid, reconstruction, and implement the necessary reforms to stabilize the country and its economy.”

Ahmed Al-Maqbi, Governor of the Central Bank of Yemen, confirmed that Yemen has lost more than $6 billion of its own resources during the past 30 months alone, due to the Houthi economic war.

He said that this loss comes "as a result of the cessation of oil and gas exports due to Houthi militia attacks on oil ports and tankers, in addition to targeting international navigation in the Red Sea, which doubled the cost of transportation and insurance and disrupted supply chains."