Official statistical reporting on Yemen is no longer available. However, the data gathered suggests that Yemen’s GDP contracted since 2015 by about 40%, cumulatively. Economic and social prospects in 2017 and beyond will depend critically on rapid improvements on the political and security fronts, and ultimately whether an end to the on-going conflict will allow for re-building the economy, the productive sphere, and Yemen’s social fabric. If peace is restored by mid-2017, the fiscal deficit is estimated to be halved, to 6% of GDP. Foreign financing can resume in the second half of the year (with emergency assistance estimated to reach 4% of GDP). At the same time, tax collection can pick up with the resumption of hydrocarbon production, with hydrocarbon tax revenues recovering to about 6% of GDP, of which two-thirds would be due to increased domestic energy consumption. Non-hydrocarbon tax revenues are estimated to reach about 8% of GDP in such a scenario.