Yemen's GDP to grow by 3.4 % in 2012

Yemen's gross domestic product (GDP) is expected to grow by 3.4 percent in 2012 and by 6.5 percent in 2013 amid plans laid out by the power-sharing government to stop the economic deterioration after the 2011 turmoil, an official report said. In 2011, the growth of Yemen's GDP saw a 19.1-percent negative growth due to the turmoil, according to a report released by the country's Planning and International Cooperation Ministry on Wednesday. The non-oil sectors will grow by 4.5 percent in 2012 and by 5. 13 percent in 2013, while the oil and gas sector will see a 3.6 percent negative growth in 2012, the report of the program for stability and development for the transitional period said. However, the oil and gas sector will grow by 11.5 percent in 2013, it said. The oil and gas sector is the backbone for Yemen's economy. Oil revenues make up more than 70 percent of the state budget and oil products account for more than 90 percent of the country's exports. The government is working hard to improve the security situation to develop the oil and gas sector through wide promotion campaigns abroad, after official reports have recently warned the current security situation does not help to attract more investors into the country. Meanwhile, Suleiman al-Qutabery, the director of the sectoral policies at the Planning and International Cooperation Ministry, said Yemen and international donors have recently held meetings in the Saudi capital of Riyadh which were dedicated to discussing progress on developmental projects financed by the donors in the county. At the meeting, there was an agreement to reschedule some projects, he said. The program for stability and development during the transitional period was reviewed at the meetings held at the Secretariat of the Gulf Cooperation Council, he added. Meantime, Yemen is looking forward to the "Yemeni Friends Meeting" scheduled for May 23 in Riyadh to rally support for the country during the two-year transitional period. The Planning Ministry has said Yemen will seek 10 billion U.S. dollars in urgent aid at the meeting to boost its economy and stabilize the national currency.