Afghanistan’s economy showed growth in 2023-2024, but high poverty, unemployment, and weak demand persist. Inflation rose in December, while the trade deficit surged by 54% to $9 billion. Despite improved food exports, declines in textiles and coal exports signal ongoing economic challenges.
According to the World Bank’s recent report, Afghanistan’s economy showed growth in 2023 and 2024 period, but this growth has not been sufficient to improve key social indicators.
The outlook remains uncertain, with policy instability, financial isolation and a lack of resources holding back progress. High poverty, unemployment and limited resources continue to leave many people vulnerable, while the economy remains weak. Low demand for goods and services slows down growth and a sharp drop in foreign aid could worsen the situation by further reducing demand amd increasing economic pressures.
Compared to November 2024, in December 2024, food prices rose by 1.4 percent. Harsh winter conditions further disrupted harvests, leading to higher costs for essential items like edible oils, fats, vegetables, dairy and spices.
During the same period, prices in the non-food sector increased for items such as clothing, furniture, household goods, as well as for health services and education.
Although prices rose in December compared to November, overall prices in December 2024 were 1.8 percent lower than the previous year, thanks to a stronger Afghani currency and improved agricultural supply, despite weak exports.
In 2024, food prices fell by 4.5 percent, driven by higher imports and improved harvests. Meanwhile, non-food prices increased by 0.98 percent compared to 2023. Overall, domestic prices in 2024 were 6.5 percent lower than in the previous year.
Afghanistan’s trade deficit saw a sharp rise in 2024, increasing by 54 percent to reach 9 billion USD—equivalent to 45 percent of the country’s GDP. In contrast, the deficit stood at 5.9 billion USD, or 34 percent of GDP, in 2023. This surge was largely driven by the Afghani’s appreciation, influenced by unexplained foreign currency inflows, shifts in government policies, and intermittent border closures with Pakistan, Afghanistan’s primary export destination.
In 2024, food exports grew by 4 percent, reaching 1.3 billion USD, driven by Chinese tariff exemptions and improved trade relations with Pakistan. In contrast, textile exports declined by 14 percent to 242 million USD, while coal exports plummeted by 64 percent to 92 million USD as Pakistan sought alternative suppliers. As a result, total exports fell by 5 percent, settling at 1.8 billion USD.
In 2024, Afghanistan’s food exports increased, driven by improved trade agreements with China and Pakistan, creating more opportunities for local farmers and businesses. However, textile and coal exports declined, potentially impacting employment in these sectors. As a result, the overall drop in total exports could have broader economic consequences, influencing job availability and the cost of goods.
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Afghanistan’s Taliban-led interim government has dismissed a recent United Nations report on the country’s security, human rights, and economic situation, calling it inaccurate and misleading.
Poland’s Special Representative for Afghanistan met with the Taliban’s acting foreign minister in Kabul to discuss political ties, Afghan refugees in Europe, and future economic cooperation, signaling a cautious but growing engagement between the two nations.
Two influential Turkic states — Uzbekistan and Türkiye — are intensifying their diplomatic engagement with Afghanistan’s Taliban-led government, signaling a shift in regional dynamics focused on pragmatic cooperation over political isolation.
At the Astana International Forum, senior officials from Kyrgyzstan and Afghanistan held talks to strengthen bilateral cooperation, with a focus on trade, economic collaboration, and regional stability.
The European Commission has proposed a new EU Space Act to create a unified and competitive single market for space services and data, in a move to strengthen Europe’s position in the rapidly growing global space sector.
The World Bank has approved over $1 billion in new funding to support rebuilding efforts and infrastructure development in Iraq, Syria, and Lebanon.
U.S. chipmaker Nvidia has reclaimed its title as the world’s most valuable company after its shares surged to a record high.
A Japanese space company has blamed a malfunctioning laser range finder for the crash of its moon lander earlier this month, marking the second failed lunar landing attempt for ispace in just over two years.
U.S. President Donald Trump has demanded that Israeli Prime Minister Benjamin Netanyahu’s corruption trial be cancelled, calling the case a “witch hunt” and suggesting Netanyahu should be pardoned.
Iran launched 18 ballistic missiles late Sunday targeting the U.S. military’s Al-Udeid Air Base in Qatar, the largest American installation in the Middle East.
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A high-speed tram derailment in central Gothenburg, Sweden, has left at least eight people injured late on Thursday (19 June), after the vehicle slammed into a snack bar on Avenyn Avenue.
Wizz Air has suspended all flights to and from Tel Aviv, Israel, and its European services to Amman, Jordan, effective immediately until 15 September due to escalating situation in the Middle East. Also, the air carrier temporarily suspended its flights between Astana, Kazakhstan, and Abu Dhabi.
China has unveiled a mosquito-sized bionic drone designed for covert military operations and battlefield reconnaissance, marking a major advance in micro-robotics and stealth technology as part of the country’s growing focus on next-generation warfare capabilities.
Kazakhstan's e-commerce sector has soared to 3.2 trillion tenge (around 6.2 billion U.S. dollars) in 2024, marking a sevenfold increase since 2020, according to Deputy Prime Minister Serik Jumanğarin.
Russia has expressed its readiness to support the signing of a peace treaty between Azerbaijan and Armenia to ensure regional stability and security.
Masked law enforcement officers have detained Archbishop Bagrat Galstanyan, leader of the 'Sacred Struggle' movement in Armenia. He is accused of preparing terrorist attacks and an alleged attempt to seize power, according to the Investigative Committee.
Kazakhstan’s Prime Minister Olzhas Bektenov has announced a major reform initiative aimed at strengthening national sovereignty in the country’s space sector.
An explosive device detonated on an armoured combat-engineering vehicle in Khan Younis in Gaza, killing seven Israeli soldiers and seriously wounding another soldier on Tuesday (24 June).
The European Commission has proposed a new EU Space Act to create a unified and competitive single market for space services and data, in a move to strengthen Europe’s position in the rapidly growing global space sector.
The World Bank has approved over $1 billion in new funding to support rebuilding efforts and infrastructure development in Iraq, Syria, and Lebanon.
U.S. chipmaker Nvidia has reclaimed its title as the world’s most valuable company after its shares surged to a record high.
A Japanese space company has blamed a malfunctioning laser range finder for the crash of its moon lander earlier this month, marking the second failed lunar landing attempt for ispace in just over two years.
U.S. President Donald Trump has demanded that Israeli Prime Minister Benjamin Netanyahu’s corruption trial be cancelled, calling the case a “witch hunt” and suggesting Netanyahu should be pardoned.
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