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Economy Overview

Afghanistan's economy is recovering from decades of conflict. The economy has improved significantly since the fall of the Taliban regime in 2001 largely because of the infusion of international assistance, the recovery of the agricultural sector, and service sector growth. Real GDP growth exceeded 8% in 2006. Despite the progress of the past few years, Afghanistan is extremely poor, landlocked, and highly dependent on foreign aid, agriculture, and trade with neighboring countries. Much of the population continues to suffer from shortages of housing, clean water, electricity, medical care, and jobs. Criminality, insecurity, and the Afghan Government's inability to extend rule of law to all parts of the country pose challenges to future economic growth. 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 level, among the lowest in the world. While the international community remains committed to Afghanistan's development, pledging over $24 billion at three donors' conferences since 2002, Kabul will need to overcome a number of challenges. Expanding poppy cultivation and a growing opium trade generate roughly $3 billion in illicit economic activity and looms as one of Kabul's most serious policy concerns. Other long-term challenges include: budget sustainability, job creation, corruption, government capacity, and rebuilding 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

754.2 million kWh (2005)

Electricity Consumption

801.4 million kWh (2005)

Electricity Exports

0 kWh (2005)

Electricity Imports

100 million kWh (2005)

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

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

$NA

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 - 46 (2006), 47.7 (2005), 48 (2004), 49 (2003), 41 (2002)

Note: in 2002, the afghani was revalued and the currency stabilized at about 40 to 50 afghanis to the US 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

$8.8 billion 2006 est.

Fiscal Year

21 March - 20 March

GDP Purchasing Power Parity

$21.5 billion (2004 est.)

GDP Real Growth Rate

8% (2006 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

India
22%
Pakistan
21%
US
14.6%
UK
6.3%
Denmark
5.5%
Finland
4.3%

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 Partners

Pakistan
37.5%
US
11.9%
Germany
7.1%
India
5.1%

Imports Commodities

Capital goods, food, textiles, petroleum products

Afghanistan