Yemen to Implement an Ambitious Five-year Plan [Archives:2001/42/Business & Economy]
According to the 5-year plan for 2001-2005, GDP per capita is expected to raise up to YR 84448 in 2005 compared to YR 75276 in 2001, growing at a yearly average rate of 2.3 percent. The plan also forecasts a rise in the balance of payments to YR 457.8 billion.
The plan focuses on a continuing government support to enhance the economic stability and augment labor force in the national economy by 876,000 workers between 2001 and 2005. The government is optimistic about this plan and says the economic growth would create about 896,000 work opportunities.
It expects to attract foreign capital to increase investment in the available domains by 28.6 percent by 2005.
The plan also aims to control unemployment and inflation rates related to non-oil GDP.
Expenditure on the final consumption is likely to rise from 71.8 percent in 2000 to 72.4 percent in 2005. The augmentation is attributed to an increase in governmental expenditure by 12 percent to cover the demands of implementing the local council system and improve the administrative system of the government and its staff.
The government is targeting GDP growth of 5.6 percent yearly as well as an increase of non-oil economy from 66.3 percent in 2000 to 74.3 percent in 2005. It is also working to provide the necessary resources, expected to amount YR 3 trillion in 2005, for a comprehensive development.
Around YR 198.821 billion (23 percent of total public expenditure and 11 percent of the GDP) has been allocated to education until 2005. In addition, about 6 to 7.6 percent of total public expenditure has been allocated to promote health services.
The first 5-year plan of 1996-2000 was said to have achieved an annual growth of 5.5 percent out of 7.2 percent targeted.
The first plan achieved a 21.3 percent rise in investments and a 44.2 percent increase in exports. The increases in oil prices greatly helped converting the 5.2 percent deficit of the budget in 1995 to a 7.1 percent surplus in 2000.
The new five-year plan seems more ambitious in economic and development growth rates. However, anticipation of the plan’s efficiency to solve and overcome the economic problems and challenges remains to be determined by its implementation.