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Rapid and sustained growth, in excess of 5% per annum, is key for sustained poverty reduction in Yemen. However, the achievement of such a target is challenging and necessitates aggressive changes in the overall business environment and governance structure along with the removal of certain obstacles to growth.This Country Study reviews Yemen's economic performance and evaluates the government's medium- and long-term development plans. It offers a detailed analysis of the major structural characteristics of the Yemeni economy and the primary economic sectors with the goal of identifying their capabilities and limitations. This report also highlights Yemen's private sector environment and external competitiveness. 'Economic Growth in the Republic of Yemen' concludes with policy recommendations which includes a concise policy matrix for accelerating and sustaining economic growth in Yemen in the medium- and long-term.