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 In 1997, IMF

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kosovohp
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PostSubject: In 1997, IMF    Tue Nov 09, 2010 1:42 am

In 1997, IMF and the Yemeni government began medium-term economic reform programs under the Enhanced Structural Adjustment Facility (ESAF) and Extended Fund Facility (EFF). This program was aimed at reducing dependence on the oil sector and establishing a market environment for real non-oil GDP growth and investment in the non-oil sector. Increasing the growth rate in the non-oil sector was one of the government's most important objectives. Programs also focused on reducing unemployment, strengthening the social safety net and increasing financial stability. To achieve these reforms, the government and IMF implemented containment of government wages, improvements in revenue collection with the introduction of reforms in tax administration, and a sharp reduction in subsidies bills through increased prices on subsidized goods. As a result, the fiscal cash deficit was reduced from 16% of GDP to 0.9% from 1994 to 1997. This was supported by aid from oil-exporting countries despite the wide-ranging fluctuations in world oil prices. The real growth rate in the non-oil sector rose by 5.6% from 1995 to 1997

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