KABUL: In its latest report, the World Bank has stated that Afghanistan’s economy is showing improvement and growth for the second year in a row.
The report, titled “Recent Developments in Afghanistan,” indicates that this growth is attributed to “low inflation and increased revenues.”
However, the report also highlights factors putting pressure on the economy, including “rapid population growth, expanding trade deficits, and persistent poverty.”
According to the report, Afghanistan’s Gross Domestic Product (GDP) is expected to grow by 3.4% in 2025, representing a 2.5% increase compared to 2024.
The World Bank further noted that a significant driver of this economic growth is the influx of over 2 million returning refugees from Iran and Pakistan, which has boosted services and industrial sectors.
Additionally, increases in wheat production and self-sufficiency, as well as growth in mining and construction materials, have been identified as contributing factors.
The report also acknowledged that the inflation rate in Afghanistan is currently low compared to the regional average, indicating stability in food supplies and the strengthening of national currencies.
World Bank: Afghanistan’s economy continues to improve for 2nd consecutive year
