HIGHLIGHTS
Reduced imports and increased prices constrain access to food and fuel
The UN condemns violence against civilians in the city of Ta’izz
Peace negotiations continue in Kuwait; cessation of hostilities remains in effect
KEY DEVELOPMENTS
Peace negotiations continue in Kuwait as Republic of Yemen Government (RoYG), Al Houthi, and other stakeholder representatives discuss economic, humanitarian, and political challenges, the UN reports. As of mid-May, UN Special Envoy for Yemen Ismail Ould Cheikh Ahmed had expressed optimism that parties to the conflict could reach agreement on all terms of the negotiations if constructive engagement continues.
The International Organization for Migration (IOM) and the Office of the UN High Commissioner for Refugees (UNHCR) recently released a report estimating that conflict in Yemen had internally displaced approximately 2.1 million people as of April 30, representing a 25 percent decrease from the nearly 2.8 million internally displaced persons (IDPs) reported in March. IOM and UNHCR attribute the decrease primarily to improved tracking methodology and significant IDP returns, particularly in Aden and Lahij governorates, as well as the city of Sana’a. The decrease in IDPs may be linked to the early April implementation of the cessation of hostilities agreement; however, the Task Force for Population Movement reports that this remains an assumption and the full effect of the agreement on displacement within Yemen remains unclear.
The partial suspension of oil production, decreased exports, and a reduction in tax revenue have contributed to an approximately 54 percent decline in total public revenue in Yemen since the escalation of the conflict in March 2015, according to the RoYG Ministry of Planning and International Cooperation. In addition, conflict-related market disruptions, the depreciation of the Yemeni rial, and increasing inflation rates have halted the implementation of public social welfare programs and significantly reduced household purchasing power, exacerbating the humanitarian situation for conflict-affected populations.