The World Bank has reported that Afghanistan’s fragile economy is under pressure from a range of economic and social shocks in the fiscal year 1404 (2025-2026). Despite a 4.8% growth in gross domestic product (GDP), per capita income has declined. According to the report, economic growth has not kept pace with an approximately 11% population increase, resulting in a 5.6% decrease in GDP per capita.<\/p>\n
The international institution identified reduced foreign aid, the prolonged closure of border crossings along the Durand Line with Pakistan, natural disasters, and the large-scale return of migrants from Iran and Pakistan as key factors straining the country’s economy. Although returnees have temporarily boosted domestic demand, they have simultaneously exerted significant pressure on the labor market, housing, and social services.<\/p>\n
The report states that non-agricultural sectors and increased private consumption have played a major role in driving economic growth. However, inflation and rising transportation and trade costs have lowered the living standards of many residents. This situation has unfolded while the Taliban administration has yet to establish a clear and effective framework for managing economic crises and effectively integrating returnees into the labor market\u2014a challenge that, according to some experts, has hindered the recovery process.<\/p>\n
The World Bank forecasts that Afghanistan\u2019s economy will grow by about 4% in the fiscal year 1405 (2026-2027), likely driven by stronger domestic demand, increased private investment, and better absorption of returnees. Nevertheless, the institution warns that regional instability\u2014particularly disruptions in trade routes and the repercussions of Middle East crises\u2014remains a serious threat to the country\u2019s economic stability.<\/p>\n
The report emphasizes that achieving sustainable economic resilience depends on securing peace, stabilizing trade routes, and effectively integrating returnees into the workforce. The World Bank also notes that economic pressures are not limited to Afghanistan; countries in the Middle East, North Africa, and Pakistan are facing similar challenges related to inflation, trade, and social stability.<\/p>\n","protected":false},"excerpt":{"rendered":"
The World Bank reports Afghanistan\u2019s per capita income decline despite 4.8% GDP growth, citing regional instability and returnee pressures on the economy.<\/p>\n","protected":false},"author":2,"featured_media":10468,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7,17,16],"tags":[],"class_list":["post-10470","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-important-news","category-secondary-headline"],"_links":{"self":[{"href":"https:\/\/atlaspress.news\/en\/wp-json\/wp\/v2\/posts\/10470","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/atlaspress.news\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/atlaspress.news\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/atlaspress.news\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/atlaspress.news\/en\/wp-json\/wp\/v2\/comments?post=10470"}],"version-history":[{"count":0,"href":"https:\/\/atlaspress.news\/en\/wp-json\/wp\/v2\/posts\/10470\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/atlaspress.news\/en\/wp-json\/wp\/v2\/media\/10468"}],"wp:attachment":[{"href":"https:\/\/atlaspress.news\/en\/wp-json\/wp\/v2\/media?parent=10470"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/atlaspress.news\/en\/wp-json\/wp\/v2\/categories?post=10470"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/atlaspress.news\/en\/wp-json\/wp\/v2\/tags?post=10470"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}