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World Bank Reports Modest Economic Growth Amid Aid Cuts in Afghanistan

The World Bank has reported that despite a reduction in aid, Afghanistan's economy has grown by about 2.5% in the fiscal year 2024-2025, which is lower than the country’s population growth rate.

On the other hand, the Ministry of Economy attributes this growth to a focus on domestic production, job creation, support for the private sector, and maintaining monetary stability.

Abdul Rahman Habib, spokesperson for the Ministry of Economy, stated: “Priority has been given to the implementation of infrastructure projects to achieve developmental goals and a stable economy, which in the long term can play a major role in increasing domestic production, reducing poverty, ensuring food security, boosting revenues and employment opportunities, and contributing to self-sufficiency.”

However, some economic experts have expressed differing views about the report, stating that Afghanistan still faces numerous challenges.

Seyar Quraishi, economic analyst, said: “The World Bank report will have some implications. Firstly, the decrease in per capita income meaning when population growth surpasses economic growth, the per capita GDP declines, leading to worsening average living standards.”

Qutbuddin Yaqubi, another economic analyst, said: “Unfortunately, given the population increase in Afghanistan, this growth is not sufficient to meet the country's future needs unless investments are made in Afghanistan’s private sector and international aid continues.”

Nearly two months ago, the United Nations also released a similar report, citing Afghanistan’s 2.7% economic growth, but warning about the fragility and instability in trade and public investment sectors.

World Bank Reports Modest Economic Growth Amid Aid Cuts in Afghanistan

However, some economic experts have expressed differing views about the report, stating that Afghanistan still faces numerous challenges.

تصویر بندانگشتی

The World Bank has reported that despite a reduction in aid, Afghanistan's economy has grown by about 2.5% in the fiscal year 2024-2025, which is lower than the country’s population growth rate.

On the other hand, the Ministry of Economy attributes this growth to a focus on domestic production, job creation, support for the private sector, and maintaining monetary stability.

Abdul Rahman Habib, spokesperson for the Ministry of Economy, stated: “Priority has been given to the implementation of infrastructure projects to achieve developmental goals and a stable economy, which in the long term can play a major role in increasing domestic production, reducing poverty, ensuring food security, boosting revenues and employment opportunities, and contributing to self-sufficiency.”

However, some economic experts have expressed differing views about the report, stating that Afghanistan still faces numerous challenges.

Seyar Quraishi, economic analyst, said: “The World Bank report will have some implications. Firstly, the decrease in per capita income meaning when population growth surpasses economic growth, the per capita GDP declines, leading to worsening average living standards.”

Qutbuddin Yaqubi, another economic analyst, said: “Unfortunately, given the population increase in Afghanistan, this growth is not sufficient to meet the country's future needs unless investments are made in Afghanistan’s private sector and international aid continues.”

Nearly two months ago, the United Nations also released a similar report, citing Afghanistan’s 2.7% economic growth, but warning about the fragility and instability in trade and public investment sectors.

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