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World Bank: Afghanistan's economic future remains fragile

news agency َAfghan News , 7 Dec 2024 - 15:49

In its latest report, the World Bank announced that the Afghan economy has experienced moderate growth in recent years, but it still faces serious challenges.


According to Amac News: This report shows that Afghanistan's GDP grew by 2.7 percent last year. However, this growth is mainly driven by private consumption and has only partially compensated for past economic losses.
The World Bank described this growth as "fragile and uncertain" and emphasized that Afghanistan's economy remains under pressure from fiscal constraints, trade imbalances, and limited public investment capacity.
According to this report, in 2021, provinces such as Kabul, Kandahar, Helmand and Zabul, which relied more on foreign aid, experienced the sharpest decline in economic activities compared to 2020. This decrease is mainly due to the cessation of international aid and political changes in Afghanistan.
Meanwhile, Sakhi Ahmad Peyman, the first deputy of the Afghanistan Chamber of Industries and Mines, while pointing to the relative improvement in the country's economy, said: "The concerns that existed in the past have decreased and now we are witnessing positive economic growth, monetary stability and inflation reduction.These are positive points for Afghanistan's economy."
Abdol Latif Nazari, Deputy Minister of Economy of the Ministry of Economy of this country, also pointed to the effective factors in economic improvement and stated: "Eradicating corruption, implementing macro-economic and job-creating projects are among the measures that can help reduce poverty and improve people's living conditions."
This report also states that during the past three years, Afghanistan's economic relations with neighboring countries have improved and the amount of exports and imports has increased. This represents efforts to strengthen regional trade and create economic stability.
However, the World Bank has warned that to achieve sustainable growth and reduce economic vulnerabilities, Afghanistan needs coherent fiscal policies and more investment support.


Story Code: 2230

News Link :
https://www.amacnews.com/en/news/2230/world-bank-afghanistan-s-economic-future-remains-fragile

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