The Essential Role of Remittances in Mitigating Economic Collapse

Scarce opportunities to earn a viable livelihood in Yemen continue to drive hundreds of thousands of Yemenis abroad in search of work, especially to neighboring countries. Over time, remittances from Yemeni expatriates have become one of the most important sources of foreign currency inflows into Yemen and have played an essential role in mitigating economic collapse during the ongoing war. Since approximately 90% of total remittances come from neighboring countries, the forcible deportation of Yemeni workers en masse; labor market nationalization campaigns that impose greater restrictions on the number of job categories open to expatriate workers; and very high fees to live and work for legally documented workers and their families have resulted in a decline of these remittances on which millions of Yemenis depend and therefore in huge losses to the country’s economy.

This infographic is based on RYE Policy Brief 17.