A report issued by the International Monetary Fund (IMF) expressed concern over Yemen's increasing inflation rate, which rose from five percent in 1997 to more than 11 percent in 2000.
In its report, the IMF was also critical of the pace of economic reform in the country, which it said had slowed since the end of 1999. IMF proposed that tax reforms be introduced to decrease the country’s dependence on oil revenues as the main source of income.
Noting that Yemen's economy registered growth of 6.5 percent at the end of 2000, the IMF pointed out that it was almost entirely a result of the increase of oil prices. For the year 2001, a growth rate of 2.4 percent was predicted. Yemen is expected to export more than 59.9 million barrels of crude oil this year, with a forecast profit of $1.3 billion on the basis of $22 per barrel.
The IMF stated that economic progress is possible if the government takes strong measures to limit corruption and open the way for more investment. The organization also expressed its optimism that settling the border dispute with Saudi Arabia will have a positive effect on the economy. — (Albawaba-MEBG)
© 2001 Mena Report (www.menareport.com )