The flag of former South Yemen flies at a checkpoint manned by pro-government soldiers in the southern port city of Aden. REUTERS/Fawaz Salman
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Yemen has endured thousands of airstrikes and the deaths of more than 10,000 people in a 19-month-old war that has also unleashed hunger on the desperately poor country – but its biggest challenge may be yet to come.A three-day truce to allow in more humanitarian aid and prepare a political settlement collapsed last week, reflecting deadlocked efforts to end the stalemated war.The government said it moved to Aden from Saudi exile in September while the Houthis formed their own government in Sanaa this month.Seeking to bar the Houthis from using state funds to finance their war effort, Hadi ordered the central bank to be moved to Aden which will hurt the Houthis but risks economic instability and even famine.Deeply impoverished and beset by tribal feuds and militant attacks even before the war, Yemen's economy shrank by about 28 percent in 2015, according to government statistics.
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