“Iron Fist” Shuts Shops and Deepens Hunger: Houthi Measures Push Northern Yemen’s Economy Toward Collapse

Yemen Monitor / Newsroom:

A report issued by the Famine Early Warning Systems Network (FEWS NET) has revealed a severe deterioration in economic conditions in areas of northern Yemen under the control of the Houthi group.

The report said the downturn is largely driven by aggressive revenue-collection campaigns carried out by the group against the private sector and commercial activities, significantly undermining the stability of the local economy.

It noted that the private sector is facing a marked decline due to additional fees and increasingly restrictive regulations imposed by Houthi authorities, affecting a wide range of businesses, including restaurants, shops, and hotels.

According to the report, these measures have forced the closure of many small commercial enterprises, particularly following the group’s imposition of a 100 percent customs tax on imported non-food goods.

The report warned that sustained losses in household income and shrinking purchasing power will severely limit people’s ability to secure basic food needs.

In a related development, the report highlighted a worsening food insecurity crisis in the region, especially amid the suspension of emergency food assistance previously provided by the World Food Programme (WFP) since late August.