The conflict in Yemen's Western Coast has directly impacted the economy of liberated areas, causing a dramatic surge in the price of onions, a staple food. Prices have more than doubled, highlighting the direct economic consequences of military engagements on the civilian population.
The repercussions of the battles in the Western Coast, which resulted in the loss of key cities like Mokha and the strategic Bab al-Mandab strait, extend beyond political and military setbacks. Citizens in liberated regions are now experiencing a significant economic shock, evidenced by the exorbitant rise in onion prices. This surge is attributed to the disruption of supply from the Western Coast region, a major producer that previously met a substantial portion of market demand.
Residents in Aden have reported a drastic increase in the price of a kilogram of onions, reaching approximately 2,500 Yemeni Rials, a sharp rise from the previous stable price of around 1,000 Rials. Wholesale markets in Aden confirm this trend, with a 50 kg sack of onions now costing around 85,000 Rials, up from 40,000 Rials before the recent escalation in the Western Coast. This price hike is a direct result of the halted supply from the Western Coast, which accounted for over half of the market demand in Aden and other liberated areas, forcing reliance on onions from Houthi-controlled territories.
Sources indicate that the previous stability in onion prices was due to significant production from the liberated Western Coast areas, which not only met local demand but also allowed for exports. The stark contrast in prices following the military setbacks in the Western Coast underscores the broader economic vulnerabilities within the liberated territories.
These economic impacts are not limited to a single commodity. The shrinking territory under government control means a loss of vital resources and goods to Houthi-controlled areas. This not only strains remaining resources but also drives up prices of essential items, as seen with the onion market. Furthermore, the fall of densely populated cities like Mokha exacerbates the situation by forcing thousands of displaced persons into already strained liberated areas, increasing pressure on services and resources.
The economic implications are magnified by the ongoing division enforced by the Houthi militia for the past eight years. The shrinking geographic area and population operating under the newly issued currency, which the Houthi militia prohibits, poses a significant long-term economic risk. While the immediate impact of the fall of Mokha and other towns is still unfolding, the potential fall of larger cities like Marib and Taiz, which house over 5 million people—approximately one-third of the population in areas controlled by the legitimate government—could represent an unprecedented economic catastrophe.
