Even before the current conflict, Yemen’s public finances suffered from an overdependence on energy exports, one of the lowest tax collection rates in the world, and chronic budget and balance of payments deficits. The ongoing conflict has complicated an already dire situation. Energy exports have almost collapsed, while general economic and state collapse saw a precipitous decline in tax revenues. Public debt has thus risen, while the fracturing of state institutions across frontlines has hobbled public revenue collection as well as fiscal and monetary policy. In this infographic, these challenges are highlighted and urgent and long overdue deep structural reforms to Yemen’s collapsing public finances are recommended.
This infographic is based on RYE Policy Brief 17.