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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 $8 billion in international assistance, recovery of the agricultural sector and growth of the service sector, and the reestablishment of market institutions. Real GDP growth is estimated to have slowed in the last fiscal year primarily because adverse weather conditions cut agricultural production, but is expected to rebound over 2005-06 because of foreign donor reconstruction and service sector growth. 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 significantly raise Afghanistan's living standards 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 continuing improvements in the Afghan economy in 2006. 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. Other long-term challenges include: boosting the supply of skilled labor, reducing vulnerability to severe natural disasters, expanding health services, and rebuilding a war torn infrastructure.

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

NA%

Labor Force

15 million (2004 est.)

Electricity production

905 million kWh (2003)

Electricity Consumption

1.042 billion kWh (2003)

Electricity Exports

0 kWh (2003)

Electricity Imports

200 million kWh (2003)

Unemployment Rate

40% (2005 est.)

Population Below Poverty Line

53% (2003)

Household Income or Consumption by Percentage Share

Lowest 10%: NA%

Highest 10%: NA%

Budget

Revenues: $269 million

Expenditures: $561 million; including capital expenditures of $41.7 million

Note: Afghanistan has also received $273 million from the Reconstruction Trust Fund and $63 million from the Law and Order Trust Fund (FY04-05 budget est.)

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 - 541 (2005), 48 (2004), 49 (2003), 41 (2002), 66 (2001)

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

GDP Official Exchange Rate

$7.095 billion

Fiscal Year

21 March - 20 March

GDP Purchasing Power Parity

$21.5 billion (2004 est.)

GDP Real Growth Rate

14% (2005 est.)

GDP Per Capital

$800 (2004 est.)

Gross National Saving

GDP Composition by end Use

GDP Composition by Sector of Origin

Agriculture
38%
Industry
24%
Services
38%
Note
data exclude opium

Inflation Rate Consumer Prices

16.3% (2005 est.)

Current Account Balance

Exports

$471 million; note - not including illicit exports or reexports (2005 est.)

Exports Partners

US
25.3%
Pakistan
20.9%
India
20.8%
Finland
4%

Exports Commodities

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

Imports

$3.87 billion (2005 est.)

Imports Commodities

Capital goods, food, textiles, petroleum products

Afghanistan