The economic growth of Yemen would increase by the end of 2007 to 5 percent compared 2.5 percent in 2006, according to an official report.

The report attributed the increase to enhancing reforms in the country, especially in the financial and monetary fields, as well astrade movement. It says that the rate of
investment would witness progress due to improvement of investment climate and supports from Gulf states and donors.

The report expects a raise of investment rate at 20 percent of the Gross Domestic Product. The deficit of the 2007 budget would reach to around YR 224 billion at 5.63 percent of the GDP, the report adds.

It makes it clear that the deficit would be covered from local funding sources at 4.7 percent of the GDP and 0.9 percent from foreign funding sources.