Skip to Main Navigation
publication February 8, 2022

Afghanistan Economic Monitor

Image

Photo Credit: Trent Inness / Shutterstock


The World Bank has been closely monitoring the evolving economic situation in Afghanistan and has been regularly producing economic monitoring reports.

The World Bank Afghanistan Economic Monitor provides a summary of the latest economic developments and key economic indicators. Drawing from a range of data sources, including real-time data collection by the World Bank’s Third-Party Monitoring Agent, the Economic Monitor provides up-to-date information on trends in prices, exchange rates, availability of key household items, and the operations of financial sector institutions. The Economic Monitor will be published monthly (or more frequently as developments warrant) and may be useful to all audiences seeking to understand current economic conditions and trends across the Afghan economy.

Afghanistan Economic Monitor | 17 June 2022

“The economy remains fragile as some of the critical structural constraints posed by the August 2021 transition persist. Most Afghan banks can still not make international transfers as correspondent banks are unwilling to engage due to AML/CFT risk perception. Loss of human capital will have a long-term scarring impact, and uncertainty around political decisions exacerbates the private sector confidence deficit. In addition, the economy is exposed to the global commodity shock. Increasing food and fuel prices are seeping into the domestic economy, resulting in a 4.3 percentage point increase in y-o-y basic household goods inflation in May 2022. As of June 15, 2022, the AFN is trading at around 3.6 percent below its August 15, 2021, value relative to the USD. Labor demand has improved slightly since February, but wages persistently fall. Despite the general economic slowdown, the ITA collected AFN63.7 billion between December 22, 2021 – end of May 2022, almost similar to what the Republic managed in the corresponding period of 2021. While imports from Pakistan have dropped by 40 percent from January 2022 to May 2022 compared to the same period of the preceding fiscal year, Afghanistan’s exports to Pakistan have increased by 88 percent. “