Afghan Economy Shows Fragile Growth as Trade Deficit and Restrictions Persist

The World Bank reports modest GDP growth of 2.7%, but warns of long-term risks tied to trade imbalances and limited inclusion of women in the workforce.

• Afghanistan's economy grew by 2.7% in 2023-24, driven by private consumption, but this only recovers a fraction of previous economic losses.
• The World Bank highlights a growing trade deficit due to rising imports of essential goods like fuel, food, and machinery, posing risks to economic stability.
• Women's participation in the economy remains critical for sustainable growth, but the Taliban's reported restrictions on medical education for women could undermine this potential.
• Falling food prices have slightly improved household welfare, though poverty remains widespread and many families struggle to meet basic needs.
• The World Bank emphasizes the need for increased investment, better access to financing for small businesses, and support for skilled women entrepreneurs to ensure long-term recovery.

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