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Economy of Afghanistan

Economy - overview:
Afghanistan's economy is recovering from decades of conflict. The economy has improved significantly since the fall of the Taliban regime in 2001 largely because of the infusion of international assistance, the recovery of the agricultural sector, and service sector growth. Real GDP growth exceeded 8% in 2006. Despite the progress of the past few years, Afghanistan is extremely poor, landlocked, and highly dependent on foreign aid, agriculture, and trade with neighboring countries. Much of the population continues to suffer from shortages of housing, clean water, electricity, medical care, and jobs. Criminality, insecurity, and the Afghan Government's inability to extend rule of law to all parts of the country pose challenges to future economic growth. 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 level, among the lowest in the world. While the international community remains committed to Afghanistan's development, pledging over $24 billion at three donors' conferences since 2002, Kabul will need to overcome a number of challenges. Expanding poppy cultivation and a growing opium trade generate roughly $3 billion in illicit economic activity and looms as one of Kabul's most serious policy concerns. Other long-term challenges include: budget sustainability, job creation, corruption, government capacity, and rebuilding war torn infrastructure.
GDP (purchasing power parity):
$21.5 billion (2004 est.)
GDP (official exchange rate):
$8.8 billion (2006 est.)
GDP - real growth rate:
8.4% (2006 est.)
GDP - per capita (PPP):
$800 (2004 est.)
GDP - composition by sector:
agriculture: 38%
industry: 24%
services: 38%
note: data exclude opium production (2005 est.)
Labor force:
15 million (2004 est.)
Labor force - by occupation:
agriculture: 80%
industry: 10%
services: 10% (2004 est.)
Unemployment rate:
40% (2005 est.)
Population below poverty line:
53% (2003)
Household income or consumption by percentage share:
lowest 10%: NA%
highest 10%: NA%
Inflation rate (consumer prices):
16.3% (2005 est.)
Budget:
revenues: $269 million
expenditures: $561 million; including capital expenditures of $41.7 million
note: Afghanistan has also received $273 million from the Reconstruction Trust Fund and $63 million from the Law and Order Trust Fund (FY04/05 budget est.)
Agriculture - products:
opium, wheat, fruits, nuts; wool, mutton, sheepskins, lambskins
Industries:
small-scale production of textiles, soap, furniture, shoes, fertilizer, cement; handwoven carpets; natural gas, coal, copper
Industrial production growth rate:
NA%
Electricity - production:
734.3 million kWh (2004)
Electricity - production by source:
fossil fuel: 36.3%
hydro: 63.7%
nuclear: 0%
other: 0% (2001)
Electricity - consumption:
782.9 million kWh (2004)
Electricity - exports:
0 kWh (2004)
Electricity - imports:
100 million kWh (2004)
Oil - production:
0 bbl/day (2004)
Oil - consumption:
4,500 bbl/day (2004 est.)
Oil - exports:
NA bbl/day
Oil - imports:
NA bbl/day
Oil - proved reserves:
0 bbl (1 January 2002)
Natural gas - production:
20 million cu m (2004 est.)
Natural gas - consumption:
20 million cu m (2004 est.)
Natural gas - exports:
0 cu m (2004 est.)
Natural gas - imports:
0 cu m (2004 est.)
Natural gas - proved reserves:
99.96 billion cu m (1 January 2005 est.)
Exports:
$471 million; note - not including illicit exports or reexports (2005 est.)
Exports - commodities:
opium, fruits and nuts, handwoven carpets, wool, cotton, hides and pelts, precious and semi-precious gems
Exports - partners:
US 25.8%, India 21.2%, Pakistan 20.3%, Finland 4.1% (2005)
Imports:
$3.87 billion (2005 est.)
Imports - commodities:
capital goods, food, textiles, petroleum products
Imports - partners:
Pakistan 39%, US 9.6%, Germany 5.6%, India 5.3%, Turkey 4.2%, Turkmenistan 4.1% (2005)
Debt - external:
$8 billion in bilateral debt, mostly to Russia; Afghanistan has $500 million in debt to Multilateral Development Banks (2004)
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
Currency (code):
afghani (AFA)
Currency code:
AFA
Exchange rates:
afghanis per US dollar - 46 (2006), 47.7 (2005), 48 (2004), 49 (2003), 41 (2002)
note: in 2002, the afghani was revalued and the currency stabilized at about 40 to 50 afghanis to the US dollar; before 2002, the market rate varied widely from the official rate
Fiscal year:
21 March - 20 March

Afghanistan Quickstats

  • Population: 31,889,923 (est.)
  • Area: 652,090 km²
  • Density: 46 /km²
  • GDP (total): 31,889,923
  • GDP (per capita): $1,490
  • Literacy: 36% (1999 est.)

Languages of Afghanistan

Useful to know

  • Currency: Afghani (AFN)
  • Dial code: +93

International Trade

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