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Afghanistan’s economy stalls | World Bank

  • Economic recovery is slow as continued insecurity curtails private investment and consumer demand. Agricultural growth has been constrained by unfavorable weather conditions. The fiscal position remains strong, driven by continued improvements in revenue performance, although Government remains heavily reliant on donor grants. Poverty continues to increase amid slow growth, security disruptions to services, and poor agricultural performance.
  • Afghanistan faces numerous political challenges as it fights the insurgency. In February 2018, President Mohammad Ashraf Ghani, during the second Kabul Process Conference, offered to the Taliban a cease-fire and prisoner release with no preconditions, but said the Taliban must recognize the government as legitimate. Parliamentary and district council elections, originally scheduled for July 07, 2018, are now rescheduled to take place on October 20, 2018.
  • World Bank Group engagement pursues a programmatic approach to support the Afghanistan National Peace and Development Framework (ANPDF). Advisory work and operations focus on macro-fiscal management and institution building, stimulating private investments and growth, governance and anti-corruption, human development and service delivery, citizen engagement and gender equality, and urbanization, infrastructure and connectivity.

Country Context

The security situation has worsened. Civilian casualties are at their highest since 2002, with an unprecedented level of conflict-induced displacement. In 2017, The United Nations Assistance Mission for Afghanistan (UNAMA) recorded 10,000 civilian casualties. During the same period, more than 202,000 Afghans were internally displaced by conflict and 44,000 others were displaced by natural disasters. A surge in returnees from Iran and Pakistan (over 296,000 in 2017) has brought mounting pressure on humanitarian assistance.

Afghanistan’s Government continued to pursue its ambitious reform agenda. In October 2016, the Government presented the new Afghanistan National Peace and Development Framework (ANPDF) at the Brussels Conference on Afghanistan (BCA). At the conference, attended by representatives of around 70 countries and 30 international organizations, development aid of $3.8 billion per year.

Source: Afghanistan Overview

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