World Bank in the latest report the Afghanistan Development Update has announced that despite the country’s relative economic growth, the standard of living of Afghan citizens has not improved and economic challenges remain.
According to the report, the 4.8 percent GDP growth was partly driven by domestic demand and the return of millions of migrants, but rapid population growth, weak investment, and structural constraints have reduced its positive impact.
Also, the return of about 3.7 million Afghans has caused GDP per capita to decrease by 5.6 percent.
The World Bank has also reported rising inflation and declining household purchasing power, warning that external pressures, regional tensions, and reduced international aid have kept Afghanistan’s economic outlook fragile.
