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In
its latest development update issued late Wednesday, the
financial institution said modest GDP growth of 2.7% was driven
by private consumption. The partial recovery, coupled with
falling food prices, helped to gradually improve household
welfare.
Before the Taliban returned to power in August 2021,
Afghanistan’s economy relied heavily on foreign aid and
corruption was rife. Their takeover three years ago sent the
economy into a tailspin, as billions in international funds were
frozen, and tens of thousands of highly skilled Afghans fled the
country and took their money with them.
Afghan’s exports remained stable in 2023-24 but imports surged,
creating a widening trade deficit, according to the World Bank.
This deficit, exacerbated by dependence on imports for essential
goods like fuel, food and machinery, could pose a risk to the
country’s economic stability.
Faris Hadad-Zervos, the World Bank’s country director for
Afghanistan, said long-term growth prospects required tapping
into the substantial potential of the domestic private sector
and improving the overall business environment.
“Key to this is increased investment, providing access to
finance to small businesses, and supporting educated and skilled
women entrepreneurs so their businesses can thrive,” said
Hadad-Zervos. “Without this, the country risks prolonged
stagnation with limited prospects for sustainable development.”
The update comes days after media reports that the Taliban have
ordered educational institutions to stop providing medical
training to women and girls. The Taliban have neither confirmed
the order nor responded to the reports.
On Thursday, the head of the U.N. children’s agency UNICEF said
she was deeply alarmed by the reported restrictions.
UNICEF was determining the veracity of these differing accounts
and welcomed efforts to address the issue, said the agency’s
executive director Catherine Russell.
If confirmed, this ban was expected to immediately halt the
medical education of thousands of women and jeopardize women and
girls’ access to health care, she added.
“It would not only further limit the ability of women to
contribute to society and earn an income but would also have
far-reaching consequences for the health of the Afghan
population. Lives would be lost,” she warned.
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