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DPA
Kabul
Afghanistan is in a state of uncertainty due to a shifting political situation and unclear peace prospects, all of which have fundamental implications for its economy, the World Bank said in development update published on Wednesday.
The results of the country’s September presidential election remain unknown, and there is no sign whether US-Taliban talks will lead to a reduction in hostilities in the country.
At the same time, major donors are signalling intentions to significantly reduce support. The country is facing a “sea of uncertainty”, World Bank reports.
According to the bank’s estimate, Afghanistan’s economy grew by 2.9 percent in 2019, thanks to a recovery in the agricultural sector after a severe drought in 2018. However, according to the bank, poverty has worsened in 2019.
“Afghanistan needs to ramp up the pace of reforms to generate faster growth necessary to improve the living standards of its people and reduce poverty,” World Bank country director Henry Kerali said.
According to the bank, the economy could grow by 3.3 per cent in 2020, but that would require continued easing of the drought, private sector recovery and a conclusion to the presidential election.
According to World Bank economist Tobias Haque, Afghanistan will need further foreign aid in the upcoming years, with only gradual decreases. With aid pledges expiring at the end of 2020, some donors have already signalled they plan to reduce their assistance significantly.
Kabul
Afghanistan is in a state of uncertainty due to a shifting political situation and unclear peace prospects, all of which have fundamental implications for its economy, the World Bank said in development update published on Wednesday.
The results of the country’s September presidential election remain unknown, and there is no sign whether US-Taliban talks will lead to a reduction in hostilities in the country.
At the same time, major donors are signalling intentions to significantly reduce support. The country is facing a “sea of uncertainty”, World Bank reports.
According to the bank’s estimate, Afghanistan’s economy grew by 2.9 percent in 2019, thanks to a recovery in the agricultural sector after a severe drought in 2018. However, according to the bank, poverty has worsened in 2019.
“Afghanistan needs to ramp up the pace of reforms to generate faster growth necessary to improve the living standards of its people and reduce poverty,” World Bank country director Henry Kerali said.
According to the bank, the economy could grow by 3.3 per cent in 2020, but that would require continued easing of the drought, private sector recovery and a conclusion to the presidential election.
According to World Bank economist Tobias Haque, Afghanistan will need further foreign aid in the upcoming years, with only gradual decreases. With aid pledges expiring at the end of 2020, some donors have already signalled they plan to reduce their assistance significantly.
