Yemen's foreign trade, which once represented more than 80% of GDP, dwindled with the civil war, reaching a mere 49% of GDP in 2018, according to the World Bank, which has stopped releasing data on Yemen's trade since that date. Before the conflict, Yemen's economy heavily relied on exports of crude oil, which accounted for the majority of the country's foreign exchange earnings. However, the conflict has severely impacted Yemen's oil production and exports, leading to a decline in revenue and an increased reliance on imports. According to data by OEC, in 2022, the main exports were crude petroleum (57.3%), scrap iron (6.4%), gold (5.6%), molluscs (3.4%), and non-fillet frozen fish (3.1%); whereas imports comprised chiefly wheat (9.2%), raw iron bars (4.6%), rice (4.1%), raw sugar (2.6%), and concentrated milk (2.4%).
Saudi Arabia was Yemen's top trading partner prior to the civil war, as it received more than 30% of its exports. According to the latest figures available from OEC, in 2022, Yemen’s main customers were China (31.7%), Thailand (20.5%), India (11.9%), United Arab Emirates (6.9%), and Oman (4.8%); with imports coming from China (25.7%), United Arab Emirates (14.0%), Turkey (10.0%), India (9.8%), and Oman (3.8%). Yemen is a member of the World Trade Organization (WTO) and the Greater Arab Free Trade Area (GAFTA), and it also signed bilateral trade agreements with several countries, including China, India, and Turkey. However, the conflict has limited Yemen's ability to fully benefit from these agreements, as many ports and trade routes have been disrupted.
Yemen has a structurally negative trade balance as it needs to import most of its energy consumption, unlike most other countries in the region. According to data from the WTO, in 2022, Yemen exported USD 903 million worth of goods (+36.4% year-on-year), while imports stood at USD 5.3 billion (+5.1% year-on-year). No data was released concerning trade in commercial services. In October 2022, the UN-brokered truce expired, and despite an informal continuation, the situation deteriorated with a blockade imposed by the Houthi on IRG's oil exports. This prolonged blockade significantly decreased exports throughout 2023.
Foreign Trade Indicators | 2019 | 2020 | 2021 | 2022 | 2023 |
---|---|---|---|---|---|
Imports of Goods (million USD) | 4,721 | 4,676 | 5,054 | 5,289 | 5,031 |
Exports of Goods (million USD) | 652 | 404 | 662 | 690 | 226 |
Imports of Services (million USD) | 0 | 0 | 0 | 0 | n/a |
Exports of Services (million USD) | 0 | 0 | 0 | 0 | n/a |
Source: WTO – World Trade Organisation ; World Bank - Latest available data.
Main Customers (% of Exports) |
2019 |
---|---|
Egypt | 49.6% |
Türkiye | 28.0% |
Oman | 10.5% |
Eritrea | 0.9% |
Indonesia | 0.7% |
See More Countries | 10.3% |
Main Suppliers (% of Imports) |
2019 |
---|---|
United Arab Emirates | 24.0% |
China | 10.4% |
Saudi Arabia | 6.5% |
Oman | 5.5% |
Türkiye | 5.4% |
See More Countries | 48.2% |
Source: Comtrade, Latest Available Data
Source: Comtrade, Latest Available Data
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Latest Update: May 2024