Economy of Afghanistan

Mother Earth Travel > Country Index > Afghanistan > Map Economy History

In the 1930s, Afghanistan embarked on a modest economic development program. The government founded banks; introduced paper money; established a university; expanded primary, secondary, and technical schools; and sent students abroad for education. Historically, there has been a dearth of information and reliable statistics about Afghanistan's economy. The 1979 Soviet invasion and ensuing civil war destroyed much of the country's limited infrastructure and disrupted normal patterns of economic activity. Gross domestic product fell substantially because of loss of labor and capital and disruption of trade and transport. Continuing internal strife hampered both domestic efforts at reconstruction as well as international aid efforts. However, Afghanistan's economy has grown at a fast pace since the 2001 fall of the Taliban, albeit from a low base. GDP growth exceeded 12% in 2007 and 3.4% in 2008; growth for 2009-2010 was 22.5%. Despite these increases, unemployment remains around 40% and factors such as corruption, security, and shortage of skilled workers constrains development and the conduct of business. In June 2006, Afghanistan and the International Monetary Fund agreed on a Poverty Reduction and Growth Facility program for 2006-2009 that focused on maintaining macroeconomic stability, boosting growth, and reducing poverty. Afghanistan is also rebuilding its banking infrastructure through the Da Afghanistan National Central Bank.

U.S. Department of State

Mother Earth Travel > Country Index > Afghanistan > Map Economy History