KABUL (SW) – The World Bank states that Afghanistan’s Gross Domestic Product (GDP) has grown by 2.7% in the year 2024.
However, the bank’s report notes that this growth has only offset 10% of the economic losses incurred in previous years.
The report further highlights that while Afghanistan has seen moderate economic growth this year, this recovery has had a limited impact on addressing the country’s deeper structural economic challenges.
The report states: “The long-term growth prospects of Afghanistan depend on harnessing the substantial energy of the domestic private sector and improving the business environment. Key to this will be increasing investment, improving access to financial resources for small businesses, and supporting women entrepreneurs.”
The World Bank also identified several key challenges to Afghanistan’s economic growth, including financial constraints, trade imbalances, and limited investment capacity.
According to the bank, Afghanistan’s trade in 2024 has been imbalanced, with exports remaining stagnant while imports have risen.
Lately, Khan Jan Alokozai, a board member of the Afghanistan Chamber of Commerce and Investment running by the de-facto government of the Islamic Emirate, however, said that despite the abundant investment opportunities in Afghanistan, international sanctions remain a significant obstacle to both domestic and foreign investments.
