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 7% in 2007. 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. International pledges made by more than 60 countries and international financial institutions at the Berlin Donors Conference for Afghan reconstruction in March 2004 reached $8.9 billion for 2004-09. 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 $4 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
839 million kWh (2007 est.)
Electricity Consumption
1.088 billion kWh (2006 est.)
Electricity Exports
0 kWh (2007 est.)
Electricity Imports
230 million kWh (2007 est.)
Unemployment Rate
40% (2005 est.)
Population Below Poverty Line
Household Income or Consumption by Percentage Share
Lowest 10%: NA%
Highest 10%: NA%
Budget
Revenues: $715 million
Expenditures: $2.6 billion
Note: Afghanistan has also received $273 million from the Reconstruction Trust Fund and $63 million from the Law and Order Trust Fund (2007 est.)
Central Bank Discount Rate
NA
Commercial Bank Prime Lending Rate
Stock of Domestic Credit
$20.06 million (31 December 2007)
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
afghanis (AFA) per US dollar - NA (2007), 46 (2006), 47.7 (2005), 48 (2004), 49 (2003)
