PRESS RELEASE August 7, 2018

Afghanistan Needs to Safeguard Recovery, Says World Bank

World Bank Senior Country Economist for Afghanistan Tobias Haque introduces the latest edition of the Afghanistan Development Update that discusses the state of the Afghanistan economy. According to the Update, action is needed to safeguard recent economic recovery in the context of upcoming elections and worsening drought conditions.

World Bank Group


Business reforms, smooth election process needed to sustain growth  

KABUL, August 07, 2018 –  Afghanistan’s recent economic recovery may be at risk, according to the World Bank’s latest Afghanistan Development Update.

Released today, the twice-a-year Update states that following the economic shock of the withdrawal of international troops, the associated decline in aid and deterioration in security, and the period of political instability after the 2014 elections,. .

However, this trend now appears to be at risk, with increasing election-related violence, declining business confidence, worsening drought conditions, and apparent slowing of economic activity. , with substantial downside risks arising from the prospects of political instability around upcoming parliamentary and district council elections and presidential and provincial council elections, scheduled for October 2018 and April 2019 respectively.

,” said Shubham Chaudhuri, World Bank Country Director for Afghanistan. “More than half of Afghans now live in poverty. We cannot afford to see the current momentum lost.”

According to the World Bank, government macroeconomic policies remain appropriate in the current conditions. . The deficit will be financed largely from cash reserves, which remain at comfortable levels. . Consumer price inflation remained moderate in 2017, at around 3.1 percent, and is expected to remain at moderate levels through 2018. 

According to Chaudhuri, . He noted that the international community also has a key role to play: “Sustaining international support is critical to overall confidence and underpins the capacity of the government to implement the reforms we all view as vital.”

Assuming a relatively smooth election process, no further deterioration of the security environment, and the absence of political instability that followed 2014 elections, the World Bank is projecting a gradually accelerating growth over coming years. . Chaudhuri noted that much faster rates of growth would be required to make a substantial impact on poverty. , and taking steps to realize the job-creation potential of agriculture and agribusinesses” he said.


PRESS RELEASE NO: SAR/2018

Contacts

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Elena Karaban
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Raouf Zia
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