Afghanistan’s economy showing signs of growth: WB

KABUL (Pajhwok): Following two years of shrinkage, Afghanistan’s economy is showing signs of modest growth, the World Bank says.

The GDP growth of 2.7 percent was driven by private consumption, the Associated Press reported, citing the World Bank’s latest development update.

Issued late Wednesday, the report noted the slight recovery and declining food prices helped spur household welfare in a gradual manner.

In 2023-24, the report said, the country’s exports remained stable, but imports rose, leading to a trade deficit.

Reliance on imports for essential goods such as fuel, food and machinery, might hamper the country’s economic stability, the World Bank warned.

World Bank’s Country Director for Afghanistan Faris Hadad-Zervos stressed the need for improving the overall business environment to ensure long-term growth.

He also called for increased investment, providing access to finance to small businesses and supporting educated and skilled women entrepreneurs.

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