Economy - overview: | Afghanistan's economic outlook has improved significantly since the fall of the Taliban regime in 2001 because of the infusion of over $4 billion in international assistance, recovery of the agricultural sector and growth of the service sector, and the reestablishment of market institutions. Real GDP growth is estimated to have slowed last fiscal year primarily because adverse weather conditions cut agricultural production, but is expected to rebound over 2005-06 because of foreign donor reconstruction and service sector growth. Despite the progress of the past few years, Afghanistan remains extremely poor, landlocked, and highly dependent on foreign aid, farming, and trade with neighboring countries. It will probably take the remainder of the decade and continuing donor aid and attention to significantly raise Afghanistan's living standards from its current status, among the lowest in the world. Much of the population continues to suffer from shortages of housing, clean water, electricity, medical care, and jobs, but the Afghan government and international donors remain committed to improving access to these basic necessities by prioritizing infrastructure development, education, housing development, jobs programs, and economic reform over the next year. Growing political stability and continued international commitment to Afghan reconstruction create an optimistic outlook for continuing improvements in the Afghan economy in 2006. Expanding poppy cultivation and a growing opium trade may account for one-third of GDP and looms as one of Kabul's most serious policy challenges. |
GDP - per capita | $800 (2004 est.) |
GDP - real growth rate (%) | 8% (2005 est.) |
Agriculture - products | opium, wheat, fruits, nuts, wool, mutton, sheepskins, lambskins |
GDP - composition by sector (%) | agriculture: 38%, industry: 24%, services: 38%, note: data exclude opium production (2005 est.) |
Industries | small-scale production of textiles, soap, furniture, shoes, fertilizer, cement; handwoven carpets; natural gas, coal, copper |
Economic aid - recipient | international pledges made by more than 60 countries and international financial institutions at the Berlin Donors Conference for Afghan reconstruction in March 2004 reached $8.9 billion for 2004-09 |
Debt - external | $8 billion in bilateral debt, mostly to Russia; Afghanistan has $500 million in debt to Multilateral Development Banks (2004) |
Population below poverty line (%) | 53% (2003) |
Labor force - by occupation (%) | agriculture 80%, industry 10%, services 10% (2004 est.) |