Page 26 - What Kind of Yemen ?

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States need great financial power in order to meet all their social

needs, from health to education and from the fight against terror to
public transportation. Yemen is also experiencing similar troubles at
this time when all countries, from the richest to the poorest, have been
affected by the global financial crisis and when unemployment has
risen.
One of the biggest economic problems in Yemen is high rate of
increase in prices. The increase in prices of various basic consumer

products, not considering seasonal factors – known as core inflation –
is as high as 166% this year. However, the fact that price increases
standing at 25% in October 2011 have now come down to about 12% is
a positive sign. Unfortunately, the fact that Yemeni incomes are not ris-
ing as fast as prices is leading to increasing poverty in the country. The
monthly incomes of impoverished Yemenis are not enough to meet
their needs, and there is also a major problem of unemployment across
the country.

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