The Afghan economy is growing modestly, but the recovery is shaky. The World Bank

The World Bank reported that after two years of severe recession, Afghanistan’s economy is beginning to show some indications of recovery.

In its most recent development update, issued late Wednesday, the bank said that the modest 2.7% GDP growth was primarily driven by private expenditure. Together with declining food prices, the partial recovery contributed to a steady improvement in household welfare.

Afghanistan’s economy was highly dependent on foreign help prior to the Taliban’s comeback to power in August 2021, and corruption was rampant. Tens of thousands of highly skilled Afghans fled the country with their money, and their takeover three years ago drove the economy into a spiral by freezing billions of dollars in foreign accounts.

The World Bank reports that while Afghan exports stayed steady in 2023–2024, imports increased, leading to a growing trade deficit. The country’s economic stability may be at risk due to this deficit, which is made worse by reliance on imports for necessities like food, fuel, and machinery.

The World Bank’s country director for Afghanistan, Faris Hadad-Zervos, stated that enhancing the general business climate and utilizing the significant potential of the local private sector were necessary for long-term economic prospects.

Increased investment, giving small enterprises access to financing, and assisting educated and talented female entrepreneurs are essential to this, according to Hadad-Zervos. Without it, the nation runs the risk of experiencing protracted stagnation with little opportunities for long-term growth.

Days after media outlets reported that the Taliban had ordered schools to cease teaching women and girls medical skills, the update was released. The Taliban have not addressed the reports or acknowledged the order.

Read More News:

1. China’s Defense Minister Dong Jun Under Go Probe In PLA Crime
2. India May Be Hit By US President-Elect Trump’s First Round Of Tariffs
3. Delhi leading 4.8 mn marriages to develop 6 trillion biz within the wedding season