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IMF Warns Escalation in Red Sea Could Adversely Affect Economic Activity in Yemen

The International Monetary Fund (IMF) has warned of negative effects on Yemen due to escalation in the Red Sea, also affirming that the halt in oil exports since the Houthi attack on oil facilities in October 2022 have deprived the government of half of its revenues. The Fund said growth in Yemen is estimated to have contracted by 2 percent in 2023 while inflation remained high, despite declining global food prices.

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