Yemen has endured massive economic losses estimated at $126 billion since 2014, the country's Finance Minister, Salem bin Buraik, said on Friday.
Bin Buraik attributed the losses to what he called "the Houthi coup" in September 2014, when the Ansar Allah (Houthi) group took over Sanaa and expanded their military presence in several Yemeni provinces.
The war in Yemen intensified in 2015 after the Houthis toppled the UN-recognized government, prompting the Saudi-led military intervention in Yemen. With political and military fragmentation coupled with foreign military intervention, the country's infrastructure sustained massive destruction, impacting the country's economic growth.
According to bin Buraik, the investors have fled Yemen due to the "Houthi blackmail" and the unstable security and political situation. He indicated no genuine negotiation with the Houthis on neutralizing the national economy.
The war has paralyzed Yemen's oil and gas exports, causing a massive decline in government revenues. Before the war, Yemen's daily oil production reached 150000 to 200000 barrels, and oil revenues provided 70% of the public budget.
While the Yemeni government blames the Houthis for the country's economic deterioration, the group considers the Saudi-led coalition responsible for Yemen's financial hardships. In March this year, Houthi authorities in Sanaa estimated the losses in the economic and commercial sectors at $210 billion since the inception of the Saudi military campaign in Yemen. The Houthis say the Saudi-led coalition bombardment and the imposed blockade largely contributed to the economic deterioration.
From 2015 to 2021, the United Nations pointed out that Yemen had lost US$126 billion in potential gross domestic product (GDP). Amidst the continued economic downturn, the national poverty rate jumped from 49% in 2014 to about 80% in 2022.
