The Asian Development Bank (ADB) this week released a report stating Afghanistan’s economic status will grow by 2.5 percent this year based on favorable weather, a modest recovery for industry and improved domestic revenue collection.
Last year Afghanistan’s economy grew by two percent, while according to statistics the consumer inflation rate increased by 4.5 percent year on year from 1.1 percent in 2015.
Asian Development Bank officials also said despite the economic growth this year, the inflation rate could increase by six percent.
“This year I think given the amount of snow and rainfall you will see strong growth in the agriculture sector which will also generate employment,” said Thomas Panella, ADB's Country Director for Afghanistan.
The Ministry of Economy (MoE) however said they are hopeful that the economic status of the country will grow by 3.5 percent this year.
According to MoE, agriculture will contribute 23 percent to this while industry will be over 21 percent and the services sector 51 percent.
“Our economic situation, God willing, will be good this year and in the future. We expect that the economic situation grows by four percent. However, security challenges are in place and government is trying to somehow decrease it,” Mohammad Ismail Rahimi, MoE deputy for technical affairs said.
The ADB report also shows that this year the economic status of Asian countries, especially developing nations, will grow.