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Economy Overview

Afghanistan's economic outlook has improved significantly since the fall of the Taliban regime in 2001 because of the infusion of over $2 billion in international assistance, recovery of the agricultural sector, and the reestablishment of market institutions. Agriculture boomed in 2003 with the end of a four-year drought, but drought conditions returned for the southern half of the country in 2004. Despite the progress of the past few years, Afghanistan remains extremely poor, landlocked, and highly dependent on foreign aid, farming, and trade with neighboring countries. It will probably take the remainder of the decade and continuing donor aid and attention to raise Afghanistan's living standards up from its current status among the lowest in the world. Much of the population continues to suffer from shortages of housing, clean water, electricity, medical care, and jobs, but the Afghan government and international donors remain committed to improving access to these basic necessities by prioritizing infrastructure development, education, housing development, jobs programs, and economic reform over the next year. Growing political stability and continued international commitment to Afghan reconstruction create an optimistic outlook for maintaining improvements in the Afghan economy in 2005. Expanding poppy cultivation and a growing opium trade may account for one-third of GDP and looms as one of Kabul's most serious policy challenges.

Agriculture Products

opium, wheat, fruits, nuts, wool, mutton, sheepskins, lambskins

Industries

small-scale production of textiles, soap, furniture, shoes, fertilizer, cement; handwoven carpets; natural gas, coal, copper

Industrial Production Growth Rate

Labor Force

11.8 million (2001 est.)

Electricity production

540 million kWh (2002)

Electricity Consumption

652.2 million kWh (2002)

Electricity Exports

0 kWh (2002)

Electricity Imports

150 million kWh (2002)

Unemployment Rate

Population Below Poverty Line

53% (2003)

Household Income or Consumption by Percentage Share

Lowest 10%: NA

Highest 10%: NA

Budget

Revenues: $300 million

Expenditures: $609 million, including capital expenditures of NA (FY04-05 budget)

Commercial Bank Prime Lending Rate

Stock of Narrow Money

Stock of Broad Money

Stock of Domestic Credit

Market Value of Publicly Traded Shares

Reserves of Foreign Exchange and Gold

Debt External

$8 billion in bilateral debt, mostly to Russia; Afghanistan has $500 million in debt to Multilateral Development Banks (2004)

Stock of Direct Foreign Investment at Home

Stock of Direct Foreign Investment Abroad

Exchange Rates

Exchange rates: afghanis per US dollar - 3,000 (2004), 3,000 (2003), 3,000 (2002), 3,000 (2001), 3,000 (2000)

Note: in 2002, the afghani was revalued and the currency stabilized at about 50 afghanis to the dollar; before 2002, the market rate varied widely from the official rate

Year	2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000

Fiscal Year

21 March - 20 March

GDP Purchasing Power Parity

$21.5 billion (2003 est.)

GDP Real Growth Rate

7.5% (2004 est.)

GDP Per Capital

Purchasing power parity - $800 (2003 est.)

Gross National Saving

GDP Composition by end Use

GDP Composition by Sector of Origin

Agriculture
60%
Industry
20%
Services
20% (1990 est.)

Inflation Rate Consumer Prices

10.3% (2003)

Current Account Balance

Exports

$446 million (not including illicit exports or reexports) (FY03-04)

Exports Partners

Pakistan
24%
India
21.3%
US
12.4%
Germany
5.5%

Exports Commodities

Opium, fruits and nuts, handwoven carpets, wool, cotton, hides and pelts, precious and semi-precious gems

Imports

$3.759 billion (FY03-04)

Imports Commodities

Capital goods, food, textiles, petroleum products

Afghanistan