Press Release No. 10/419

Press Release: IMF Statement at the Conclusion of Visit to Yemen

November 8, 2010

Mr. Masood Ahmed, Director of the Middle East and Central Asia Department of the International Monetary Fund, visited Sana’a on November 7, 2010. During his visit, Mr. Ahmed met with Prime Minister Mujawar, Deputy Prime Minister for Economic Affairs Al-Arhabi, Finance Minister Alsuhaibi, and the Governor of the Central Bank of Yemen Ben Humam, and held meetings with members of the diplomatic and donor communities.

At the conclusion of his visit, Mr. Ahmed made the following statement:

“Yemen is embarking on a three-year economic program that aims to achieve high and sustained growth and durable poverty reduction over the medium-term. The program reinforces macroeconomic stability in the face of a difficult global environment and declining oil production.

“Important progress was made this year to strengthen public finances and the revenue base. This will contribute to low inflation, greater exchange rate stability, and more investment and pro-poor spending over the medium-term.

“Nevertheless, the economic challenges facing Yemen are enormous. These relate to Yemen’s heavy reliance on declining oil revenues, high unemployment, widespread poverty, and the country’s huge developmental needs.

“The role of the donor community is critical to ease Yemen’s transition to a non-oil economy and to maintain public support for the Government’s ambitious reform program. I look forward to the next Friends of Yemen ministerial meeting in Riyadh and to the quick disbursement of needed budgetary support by donors.

“I thank the Yemen authorities for their warm hospitality and the opportunity for fruitful discussions.”