Afghanistan’s economy continues to slump, but private sector can support growth, World Bank says
WASHINGTON, May 2, 2024—The World Bank says in its latest Afghanistan development update that Afghanistan’s economic outlook remains uncertain, with a growing threat of stagnation until at least 2025.
The report, Overcoming the Difficulties: Facing Economic Recession and Deflation, finds that a 26 percent contraction in real GDP growth and fewer external sources of financing for off-budget spending highlight the bleak economic outlook for Afghanistan. It is pointed out that there are. Structural deficiencies in the private sector and reduced international support for essential services are expected to hinder tangible economic development. This economic downturn threatens to deepen poverty and unemployment, with half the population already living in poverty and 15 million people facing food insecurity.
“Afghanistan’s long-term growth prospects depend on a significant shift away from consumption-driven growth and reliance on international aid to a more resilient, private sector-led economy that leverages the country’s strengths. ” said Melinda Good, World Bank Country Director. For Afghanistan. “For a sustainable future, Afghanistan needs to tackle harmful gender policies, invest in health and education, and focus on comparative advantages in agriculture and extractive sectors.”
Agriculture can be a major driver of growth and poverty reduction, creating jobs and positively impacting income distribution. Realizing this potential requires strategic investments in irrigation infrastructure, land tenure security, and market access to increase agricultural productivity and resilience.
Latest information on Afghanistan development It is part of the World Bank’s Afghanistan Futures Program, which includes research, monitoring, and analytical reports on Afghanistan’s economy and society. The program aims to support evidence-based policy-making and inform the international community about Afghanistan’s economic development.
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