Yemen

Clashes between the al-Houthi militants and government forces that took place after the agreement of a truce suggest that the issue will remain an underlying threat in spite of the recent progress on a ceasefire. However, our overall view is that the government will retain control, thanks to its superior resources and the demographics of the country as a whole, allowing Yemen to score very highly in the 'policy-making process' section of our short-term political risk ratings. However, the ongoing problems of inflation and unemployment, continue to act as a drag on the ratings.

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