Yemen's economic sectors reflect the small size of the economy.
The 2 largest economic sectors are agriculture
and oil. Agriculture accounted for 20 percent of GDP in 1998, industry
(including oil) for 42 percent, and services for 38 percent. Oil
accounts for 85 percent of export earnings and is the largest source of
government revenue. Two of the greatest obstacles to growth in all of
Yemen's economic sectors are overstaffing in all of the state
institutions and the sensitivity of the oil sector to changes in world
oil prices. Since 1995, the government has targeted certain areas of
economic growth— especially the manufacturing and construction
sectors— to fuel growth and to diversify the sources of revenue
by investing in both the oil and non-oil sectors. Growth in these
sectors, however, has been rather sluggish.