The document provides an overview of Afghanistan's economy following the fall of the Taliban regime in 2001. It discusses the country's reliance on international aid, the contributions of key economic sectors like agriculture and services, growth in GDP, high budget deficits, inflation rates, and trade balances. Afghanistan remains heavily dependent on foreign assistance, though economic conditions and several indicators like GDP have improved significantly since the early 2000s due to large amounts of international funding and investment.

1. Afghanistan Economy
By liza ormol

3. Outline
• Economy overview
• Contribution of different sectors in
economy(agriculture , services , industry)
• foreign investment
• GDP
• Government budget
• Inflation
• Trade

4. Economy overview
• Since late 2001,afghanistan has become a
major site of concentration of international aid
totaling around US$286.4 billions , or US$9,426
per afghan citizen
• The economy has improved significantly since
the fall of the Taliban regime in 2001 largely
because of infusion of international assistance
•

5. International Aid , Security

6. Cont’d
• Despite the progress of past years , Afghanistan
is extremely poor , and highly dependent on
foreign aid
• Much the population still suffering from shortage
of housing , clean water , electricity and etc.
• The international community remains committed
to Afghanistan's development , pledging over
$67 billions at nine donors

8. Contribution of different sectors
• Agriculture:
• Agriculture traditionally has been the foundation of
Afghanistan's economy , employing as much as 80% of
the workforce and contributing half of GDP
• In the early 2000s half of the arable land was
uncultivated , due to limited water supply and in begging
of 2003 agriculture output increased because of
international aid

9. GDP,Growth of different sectors

10. Cont’d
• The main legal crops are : wheat , vegetable , grapes ,
rice , corn , fruits and potato's
• The main types of livestock are cattle , sheep , and
goats; cow’s milk is the most valuable product of
livestock raising
• As of September 2009 , more than 53000 agricultural
loans ranging from approximately $200 to $2 million had
gone to small businesses

11. Donors Aid to Afghanistan

12. services
• Since 2002 the government has encouraged
recovery of a formal banking system and a set
commercial banking laws was passed in 2003
• And banks from Britain , India and Pakistan
opened their branches in Kabul
• In mid-2004 (AIB) begin operating with the
backing of the Asian development bank and
75% ownership by afghan businessmen
•

13. Cont’d
• The smuggling and other illegal economic
activity that were pervasive during war periods
left a very strong residual black-market
• Specializing in moving goods illegally into
Pakistan and moving illegal drugs north worth
into central Asia and ultimately Russia and
western Europe
• And government established 20 tourist sites by
2010

14. Industry and manufacturing
• In early 2000s, foreign investment in the industrial sector
focused on small and medium –sized enterprises ,
predominantly in telecommunications
• revival projects have concentrated on agricultural
processing and carpet enterprise
• Some small plants in Herat , Kabul and Mazar-e-Sharif
produced textiles , leather goods and processed foods

15. Foreign investment
• To encourage foreign investment , in 2002 the
government began allowing 100% foreign
ownership of afghan enterprise
• Offering substantial tax , benefits and unlimited
transfer of assets out of country
• The Afghanistan investment support agency was
established in 2003 to centralize foreign
investment activities

16. FDI by Regions

17. Cont’d
• Further investment sectors are : telecommunication ,
energy , agricultural and healthcare system
• In 2004 foreign direct investment totaled an estimated
US $351 million
• The largest investors are Pakistan , Iran , china, united
Arab Emirates , Central Asian countries , members of
the European union and the United States .

18. Gross domestic product (GDP)
• excluding illegal poppy production , for fiscal year (FY)
2004-2005 Afghanistan GDP was estimated at US$5.22
billion or US$232 per capita
• Agriculture contributed 38%
• Service contributed 38%
• Industry and mining 24%
• Following the economic stand still the late 1990s

19. GDP of Afghanistan

20. Cont’d
• GDP growth rate in early 2000s have been
very high :28.6%
• In FY 2002-2003 , 16%
• 2004-2005 , 8%
• However the starting point for such figures
are very low

21. GDP(PPP) of Afghanistan

22. Government budget
• In early 2000s , Afghanistan GDP revenue was 4% , one
of the lowest in the world
• Domestic revenue were not expected to match the
government operating cost until 2011
• Afghanistan recorded a government budget deficit of
14.40% of the country’s GDP in 2013
• Government budget in Afghanistan averaged -20.13% of
GDP from 2006 until 2013

24. Inflation
• Under the pro-soviet regimes of the 1980’s , inflation was
high but limited by government controls and inflation
reached 150% per year during civil wars of the early
1990s
• And it remained high under Taliban regime
• After the currency reform of 2002, inflation averaged
10% per year for the first two years and it rose to 16.3%
in 2005
• Afghanistan inflation rate recorded at 5.60% in march of
2014

25. Afghanistan Inflation Rate

26. Trade
• Afghanistan has been at the junction of trade routes
between central , south and east Asia for over 3000
years
• Major imports for domestic use include : agricultural
inputs , rice , wheat , fuel and cooking oil
• Major indigenous exports include : fruit and nuts, primary
material and timber
• Balance of trade in Afghanistan averaged -3425.34 USD
Million from 2003 until 2013

27. Afghanistan Trade balance