Yemen is a low income country that is highly dependent on declining oil resources for revenue.
Petroleum accounts for roughly 25% of GDP and 70% of government revenue. Yemen has tried to counter the effects of its declining oil resources by diversifying its economy through an economic reform program initiated in 2006 that is designed to bolster non-oil sectors of the economy and foreign investment.
In October 2009, Yemen exported its first liquefied natural gas as part of this diversification effort.
In January 2010, the international community established the Friends of Yemen group that aims to support Yemen's efforts toward economic and political reform.
In 2012, the Friends of Yemen pledged over $7 billion in assistance to Yemen. The Yemeni Government also endorsed a Mutual Accountability Framework to facilitate the efficient implementation of donor aid.
The unrest that began in early 2011 caused GDP to plunge more than 15% in 2011, and about 2% in 2012.
Availability of basic services, including electricity, water, and fuel, has improved since the transition, but progress toward achieving more sustainable economic stability has been slow and uneven.
Yemen continues to face difficult long-term challenges, including declining water resources, high unemployment, and a high population growth rate.