World Bank: Afghanistan’s economy is growing

World Bank: Afghanistan’s economy is growing, but the sharp increase in the population of poverty is worsening

According to the latest World Bank report, Afghanistan’s economy is expanding for the second consecutive year and the country’s gross domestic production (GDP) is projected to be 4 in 2025. 3% should grow. The growth, coupled with low inflation and increased demand from more than two million migrants returning from Iran and Pakistan, is stimulating industry and service sectors.

Rapidly growing population though (which is 8). An estimated 6%) is predicted to lead to a 4% drop in the head of Gross Domestic Production, worsening poverty. Widespread assault 4 to 4. 7 million returning migrants (between September 2023 to July 2025) have exacerbated pressure on labour markets, skirting youth unemployment, which accounts for nearly 1 in 4 young people, and deepening existing vulnerabilities, particularly given women’s economic constraints Is.

The financial situation has improved with increased domestic tax revenues, but this will be neutralized by a cut in foreign aid and maintains the country’s fervent dependence on donor aid. The World Bank stresses that Sustainable recovery requires urgent reforms to boost private investment and private-sector-centric job creation for youth and women to reduce dependence on humanitarian aid.