Finance Minister, Sakhr Al-Wajeeh, on Tuesday said Yemen is seeking to achieve between 1.5-2% economic growth which can, along with external aid and loans, help overcome the budget deficit in 2012.
The power-sharing government passed the state budget for the fiscal year 2012 at over $9 billion, but expected the deficit will be at about $2.5 billion.
"The government aims to achieve an economic growth of at least 1.5% this year, amid persistent political unrest and security disorders affecting the national economy," Al-Wajeeh said after signing two agreements with the Arab Monetary Fund in the United Arab Emirates, according to media reports.
Earlier this month, the Arab Monetary Fund agreed to lend Yemen about $205 million in aid to help finance the balance of payments and conduct robust economic reforms.
In May, friends of Yemen pledged $4.25 billion in urgent aid to the country, but there should be arrangements and meetings to absorb and get the funds. Saudi Arabia pledged about 43.25 of the aid.
Yemen has been largely affected by the 2011 protests against the former regime, with officials and economists arguing the national economy is now almost paralyzed.
Key sectors including productive ones have been affected by 90 percent and the current security situation is continuing to affect investments and the economy, they said.
In the meantime, Yemen pins hope of a meeting of donors expected this month in Saudi Arabia, to get at least $10 billion in urgent aid during the transition period.