Yemen's new gas industry and foreign aid will fuel economic growth of up to 8 percent this year, despite insecurity that has helped drive the riyal to its lowest level for years, a senior Central Bank official said. Fears of economic collapse are misplaced and the Central Bank is ready to sell more dollars to defend the riyal, Ibrahim Al-Nahari, sub-governor for foreign banking operations, said. “I expect 2010 will be a very good year compared to 2009, he told Reuters. “We are hoping to see growth between 7.5 and 8 percent.” Exports from a $4.5 billion liquefied natural gas (LNG) project began only in October, several months behind schedule, keeping real growth in gross domestic product (GDP) to 4.1 to 4.2 percent in 2009 against a targeted 5 percent, Nahari said. Oil income, which accounts for up to 75 percent of budget revenue, plunged to $2 billion in 2009 from $4.4 billion in the previous year when world prices peaked, he said. Tourism earnings and remittances from Yemenis working abroad also suffered in the global financial crisis. Nahari said revenue would rise this year.
