_#_Diplomatic representation: Ambassador Muhsin Ahmad al-AYNI; Chancery at Suite 840, 600 New Hampshire Avenue NW, Washington DC 20037; telephone (202) 965-4760 or 4761; there is a Yemeni Consulate General in Detroit and a Consulate in San Francisco;
US—Ambassador Charles F. DUNBAR; Embassy at Dhahr Himyar Zone,
Sheraton Hotel District, Sanaa (mailing address is P. O. Box 22347 Sanaa,
Republic of Yemen or Sanaa—Department of State, Washington, D. C.
20521-6330); telephone [967] (2) 238-842 through 238-852
_#_Flag: three equal horizontal bands of red (top), white, and black; similar to the flag of Syria which has two green stars and of Iraq which has three green stars (plus an Arabic inscription) in a horizontal line centered in the white band; also similar to the flag of Egypt which has a symbolic eagle centered in the white band
_*Economy #_Overview: Whereas the northern city Sanaa is the political capital of a united Yemen, the southern city Aden, with its refinery and port facilities, is the economic and commercial capital. Future economic development depends heavily on Western-assisted development of promising oil resources. South Yemen's willingness to merge stemmed partly from the steady decline in Soviet economic support.
North—The low level of domestic industry and agriculture have made northern Yemen dependent on imports for virtually all of its essential needs. Large trade deficits have been made up for by remittances from Yemenis working abroad and foreign aid. Once self-sufficient in food production, northern Yemen has been a major importer. Land once used for export crops—cotton, fruit, and vegetables—has been turned over to growing qat, a mildly narcotic shrub chewed by Yemenis that has no significant export market. Oil export revenues started flowing in late 1987 and boosted 1988 earnings by about $800 million.
South—This has been one of the poorest Arab countries, with a per capita GNP of about $500. A shortage of natural resources, a widely dispersed population, and an arid climate have made economic development difficult. The economy has grown at an average annual rate of only 2-3% since the mid-1970s. The economy had been organized along socialist lines, dominated by the public sector. Economic growth has been constrained by a lack of incentives, partly stemming from centralized control over production decisions, investment allocation, and import choices.
_#_GDP: $5.3 billion, per capita $545; real growth rate NA% (1990 est.)
_#_Inflation rate (consumer prices):
North—16.9% (1988);
South—0% (1989)