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.
Afghan refugees in Pakistan face arrests and forced relocations as part of a growing repatriation campaign, raising concerns from the U.N. Refugee Agency.
Mullah Abdul Ghani Baradar, Deputy Prime Minister of Afghanistan, met with Qatar's Prime Minister to discuss Afghanistan’s challenges. The Qatari leader reaffirmed Qatar's commitment to supporting the country's stability and humanitarian needs.
Explosion near Kabul's Urban Development Ministry: Suicide bomber neutralized, one killed, three injured. ISKP suspected amid rising security threats in Afghanistan.
Elon Musk brandished a chainsaw on stage at the Conservative Political Action Conference (CPAC) on Thursday, calling it “the chainsaw for bureaucracy” as he backed Donald Trump’s sweeping government reforms.
Canadian Prime Minister Justin Trudeau and Ukrainian President Volodymyr Zelenskyy stressed that any talks to end the war with Russia must include Ukraine, following concerns over U.S. President Donald Trump’s approach to negotiations.
Three bombs exploded on empty buses near Tel Aviv in a major attempted attack, while two other devices were disabled. Israeli authorities are investigating, and Prime Minister Benjamin Netanyahu has vowed retaliation against Hamas.
European Union foreign policy chief Kaja Kallas warned that recent U.S.-Russia interactions show Moscow has not abandoned its territorial ambitions in Ukraine, cautioning that appeasing Russia would set a dangerous precedent.
The remains of victims who lost their lives in the recent clashes between M23 rebels and Military forces in Bukavu have been buried in a mass grave on Thursday.
Estée Lauder and L’Oréal are facing challenges in the Chinese market as local beauty brands gain popularity. Rising competition, shifting consumer preferences, and economic factors have impacted sales, forcing global cosmetics giants to adapt their strategies.
Russian President has invited his U.S. counterpart, along with leaders from many other countries to Moscow in May to attend the 80th anniversary of the end of World War II, which Russians refer to as the "Great Patriotic War."
USAID has long promoted itself as a supporter of press freedom, but reports suggest its media funding may have influenced domestic narratives in Europe and post-Soviet states. With the Trump administration freezing its grants, the agency’s role in shaping global information is under scrutiny.
A Delta Air Lines regional jet flipped upside down upon landing at Toronto Pearson Airport on Monday, injuring 18 people. Officials are investigating whether strong winds and snow played a role in the incident.
Three bombs exploded on empty buses near Tel Aviv in a major attempted attack, while two other devices were disabled. Israeli authorities are investigating, and Prime Minister Benjamin Netanyahu has vowed retaliation against Hamas.
Israeli Prime Minister Benjamin Netanyahu vowed revenge after Hamas returned the bodies of four hostages, including infants, in a highly publicised handover. The move comes amid ongoing ceasefire negotiations and a deadly 16-month-long war.
Hezbollah is set to hold a funeral for Sayyed Hassan Nasrallah as regional tensions escalate. The event comes amid rising hostilities, with concerns over potential repercussions in Lebanon and beyond.
As Israel maintains control over key positions in southern Lebanon, the government in Beirut is calling for international pressure to ensure the full implementation of the November 27 ceasefire and increased support for Lebanese security institutions.
Iran's Supreme Leader, Ali Khamenei urged the Emir of Qatar to release Iranian oil revenues that had been frozen in Doha regardless of any U.S. pressure.
Elon Musk brandished a chainsaw on stage at the Conservative Political Action Conference (CPAC) on Thursday, calling it “the chainsaw for bureaucracy” as he backed Donald Trump’s sweeping government reforms.
Canadian Prime Minister Justin Trudeau and Ukrainian President Volodymyr Zelenskyy stressed that any talks to end the war with Russia must include Ukraine, following concerns over U.S. President Donald Trump’s approach to negotiations.
Three bombs exploded on empty buses near Tel Aviv in a major attempted attack, while two other devices were disabled. Israeli authorities are investigating, and Prime Minister Benjamin Netanyahu has vowed retaliation against Hamas.
European Union foreign policy chief Kaja Kallas warned that recent U.S.-Russia interactions show Moscow has not abandoned its territorial ambitions in Ukraine, cautioning that appeasing Russia would set a dangerous precedent.
The remains of victims who lost their lives in the recent clashes between M23 rebels and Military forces in Bukavu have been buried in a mass grave on Thursday.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment