The World Bank Group has announced that Afghanistan’s economy, despite limited growth, continues to face serious challenges and that this growth has not led to improved living standards or increased incomes for the population.
In a new report released on Tuesday, May 26, the World Bank stated that the country’s real gross domestic product (GDP) grew by approximately 4.8 percent, but that this growth remains under pressure from structural and demographic constraints.
The report noted that the return of millions of citizens of Afghanistan to the country, combined with increased domestic demand alongside economic restrictions, has affected the overall state of the economy.
The World Bank stated that despite economic growth, rapid population increase, weak investment, and structural limitations have prevented the benefits of this growth from reaching the people.
The report also highlighted a decline in per capita income, rising inflation, and reduced household purchasing power, noting that economic pressures on people’s lives have intensified.
According to the report, despite a relative improvement in domestic revenue collection, the reduction in foreign aid has limited the capacity to invest in infrastructure and manage the economic crisis.
The World Bank emphasized that Afghanistan’s foreign trade situation also remains fragile, with the country’s trade deficit continuing to widen.
