Afghanistan's economy has shown modest growth, with a GDP increase of 2.7% reported recently. However, this growth represents only a recovery of about 10% of the losses incurred since the Taliban took control in 2021 [f78ae8ea]. The country continues to face significant challenges, including fiscal constraints, trade imbalances, and limited capacity for public investment [f78ae8ea].
The World Bank has emphasized the critical need for women's economic participation, price stability, and addressing deficits in human capital to foster sustainable growth [f78ae8ea]. Despite the modest economic progress, many Afghans still live below the poverty line, and the trade deficit has worsened due to a heavy reliance on imports for essential goods [f78ae8ea].
Faris Hadad-Zervos from the World Bank highlighted the importance of improving the business environment and supporting women entrepreneurs as vital steps toward economic resilience [f78ae8ea]. The Taliban's rule has not yet garnered official recognition from any country, complicating Afghanistan's international relations and economic recovery efforts [f78ae8ea]. As the nation navigates these turbulent waters, the focus remains on creating a more inclusive economy that can withstand external shocks and provide for its citizens.