macroeconomic 3 2814057 2

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I have this macroeconomic question that I have to answer it in two pages.

 

The government of Yemen collapsed recently.  Yemen has a troubled history of civil war, religious strife, and Marxist revolution.  Yemen’s essential macroeconomic position in 2013 may be described by these values of the standard variables provided below.

 

A)        Is Yemen a wealthy nation or a poor nation?  Explain.  

B)        What are the key elements in the natural resource endowment and in the social-political-economic C)  institutions which explain the macroeconomic position of Yemen and of the performance of Yemen’s macroeconomy?  

 

GDP per capita = $2,500     – – – ranked 187th highest in world (out of total of 228 nations ranked)

(unchanged from 2012 and 2011)

 

real GDP growth rate = +3.8%    – – – ranked 86th highest in world (out of 221 nations)

(up from +0.1% in 2012)

 

Unemployment Rate = 35% last estimated in 2003    – – – ranked 188th highest in world (out of 203 nations)

 

Inflation Rate = +11.8%        – – – ranked 213th highest in world (out of 223 nations)

(up from +9.9% in 2012)

 

Government Budget Deficit = -10.3% of GDP          – – – ranked 206th highest in the world (out of  216 nations)

 

Public Debt = 47.1% of GDP    – – – ranked 73rd highest in world (out of 161 nations)

(up from 45.4% in 2012)

 

Exports = $6.69 b.        – – – ranked 105th largest in world (out of 223 nations)

(down from $7.6 b. in 2012)

 

Imports = $10.97 b.        – – – ranked 96th largest in world (out of 222 nations)

(down from $12.49 b. in 2012)

 

[source: CIA WORLD FACTBOOK: https://www.cia.gov/library/publications/the-world-factbook/geos/fr.html.]

 

worldwide median values in 2013:

GDP per capita = $10,800 (114th position: Azerbaijan)

real GDP growth rate =  +3.10% (111th position: Algeria)

Unemployment Rate = 9.5% (103rd position: Morocco)

Inflation Rate = 2.9% (111st position: Peru)

Government Budget Deficit = -2.6% of GDP (109th position: Uruguay)

Public Debt = 45.8% (80th position: Argentina)

Exports = $5.69 b. (111st position: Bosnia and Herzegovina)

Imports = $7.39 b. (112th position: Botswana)

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