A significant contributing factor is likely a sustained decline in remittances from workers in Gulf states, related to long-term policy changes as well as recent pandemic policy responses. This coincides with a dramatic drop in humanitarian donor funding, putting further pressure on the exchange rate. In addition, the war is ongoing, COVID-19 and other diseases are spreading and the whole country has now been hit by devastating rains and floods.
Hunger could become significantly more widespread, although agencies may lack the data to define this as famine.
The decline in remittances will especially impact the small-scale private sector of shops and microenterprises.
Increased poverty and inequality could worsen community-level instability, particularly in rural areas.
Yemenis’ perceptions of Saudi Arabia could become even more negative, despite ongoing economic and political dependence.
