Afghanistan Times
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KABUL – Afghanistan’s economy remains under significant strain, with the World Bank warning of an “uncertain” future despite modest GDP growth of 2.7 percent, primarily driven by private consumption. This recovery has offset only about 10 percent of the country’s previous economic losses.
The Afghanistan Development Update outlines persistent challenges, including fiscal constraints, trade imbalances, and limited public investment capacity. The World Bank stressed that sustainable recovery hinges on addressing key deficits in education and healthcare, stabilizing prices, and integrating women into the workforce.
Faris Hadad-Zervos, the World Bank’s country director for Afghanistan, emphasized the importance of boosting the domestic private sector, fostering a conducive business environment, and providing support for women entrepreneurs. “Afghanistan’s growth prospects depend on unlocking its potential for investment and innovation,” he said.
Afghanistan, under Taliban rule since 2021, remains diplomatically isolated, with widespread poverty affecting most of the population. Although falling food prices have improved household welfare slightly, poverty remains rampant, leaving many unable to meet basic needs.
The World Bank’s report highlights a dire need for greater international engagement and structural reforms to stabilize the nation’s fragile economy.
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