The World Food Programme (WFP) has stated that measures implemented by the Houthi group in areas under its control have exacerbated the humanitarian and economic crisis facing Yemenis, warning that ongoing policies targeting humanitarian organizations and the private sector continue to undermine livelihoods and weaken people's ability to cope with deteriorating living conditions. In its latest Yemen Food Security Update, the UN agency said the economic environment in Houthi-controlled areas has recently seen an escalation in the imposition of taxes and levies, alongside the confiscation of assets belonging to traders and investors. According to the report, these practices have directly disrupted economic activity, reduced employment opportunities, and diminished households' ability to meet their basic needs. The report noted that the economy in these areas is facing mounting pressure due to declining foreign currency reserves, a worsening liquidity crisis, sanctions, and the impact of the relocation of major banking headquarters to the interim capital, Aden. These developments have further complicated the financial sector and slowed commercial activity. The WFP said the Houthi authorities' economic policies toward the private sector have not only weakened businesses, traders, and investors but have also intensified economic hardship for ordinary citizens through rising living costs, shrinking employment opportunities, and declining household incomes. The report also highlighted that damage to Red Sea ports has reduced public revenues, estimating economic losses at approximately US$1.4 billion. This comes as Yemen remains heavily dependent on imports to meet the population's demand for food and essential commodities. According to the WFP, around 70 percent of people living in Houthi-controlled areas reported a decline in their monthly income, reflecting weakening purchasing power and a widening gap between household needs and financial resources. The agency attributed the decline to several factors, including the suspension of a significant portion of humanitarian assistance and social protection programs, restrictions on the operations of humanitarian organizations, and a shortage of international funding. |
