The Impact of War on Some Macroeconomic Variables in The Yemeni Economy A Descriptive Analytical Study for the Period (2015-2017): The Impact of War on Some Macroeconomic Variables in The Yemeni Economy A Descriptive Analytical Study for the Period (2015-2017)

Abstract

The study aimed at identifying the impact of the war on some macroeconomic variables, namely: gross domestic product, public budget, exchange rate, trade balance, and indebtedness. The study concluded that gross domestic product shrank at a cumulative rate of 55% during the first three years of the war. After the war and during the period 2015-2017, the public budget deficit amounted to an average of 740.2 billion riyals, with an increase of 70%, and accounted for 13.7% of the GDP, compared to 6.3% before the war. The average deficit in the trade balance for the period 2015-2017 amounted to 1330 billion riyals, and as 24.8% of the GDP. The currency’s value, on average, decreased at an annual rate of 66% during the period 2015-2018. The debt rose after the war, and constituted 128% of the GDP as an average for the period 2015-2017.