Akademik Veri Yönetim Sistemi
International Journal of Advanced and Applied Sciences, cilt.8, sa.6, ss.118-127, 2021 (ESCI)
Assessing a certain country’s macro-economy performance faces innumerable challenges, of which the most important ones are running counter to the objectives of economic policy. Added to these challenges is the absence of a consensus among economists regarding the identification of variables, which can be taken for granted while assessing a country’s macroeconomy performance? The present study aims at assessing Yemen’s macroeconomy performance during the period 2001-2015 using the four economic variables (economic growth, unemployment, inflation, and current account) that constitute Kaldor’s Magic Square chart of 1971. To avoid challenges connected with variables’ measurement, the economic welfare indicator has been used. The findings show a drastic deterioration in the level of economic welfare during the period mentioned above, with an impressive decrease in the value of economic welfare from 0.36 in 2001 to zero in 2015 as the magic square scale showed. Assessing the economic performance during the period showed that the economic performance in 2001 was better than that of 2015, with a departure of Yemen’s economic performance from the performance of the wonderland economy. Hence, Yemen’s economy can be described as an ill-performance economy, basically due to the high averages of unemployment and inflation.