Over the past four years, specifically since the Houthi militia’s coup and its control over the capital and other Yemeni cities, Yemen’s economy has been engulfed in multiple crises. It witnessed a sharp deterioration due to the looting and deliberate destruction practiced by the militias throughout their rule.
A Dark Turning Point
Numerous local and international reports and studies confirm that the coup marked a dark turning point in both the political and economic realities of Yemen. It created a new situation characterized by unprecedented deterioration in Yemen’s economic condition. The economy plummeted under the control of the militias, which not only stopped at that but also further exploited the situation through various forms of extortion and violations, leading to a major catastrophe in Yemen’s economy.
Yemeni analyst Abdulhafiz Nahari states that the coup had a direct and negative impact on Yemen’s economy. It led to the collapse of the national currency, soaring inflation rates, and the deterioration of social services, social safety nets, and assistance to the poor.
Since the militias’ coup, Yemen’s economy has witnessed a record collapse on all levels. Its consequences include a rise in poverty rates, unemployment, hunger indicators, and the spread of diseases and epidemics. The militias, since their armed takeover of the capital and other Yemeni cities, have relentlessly sought to destroy Yemen’s economy while establishing new economic centers loyal to them based on sectarian allegiance.
Nahari emphasizes that this decline and loss in Yemen’s Gross Domestic Product (GDP) are likely to increase as long as the war continues and the Houthi militia’s coup remains in power.