Afghanistan Economy

AFGHANISTAN ECONOMY 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 7% in 2008. 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. 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. While the international community remains committed to Afghanistan's development, pledging over $57 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): $23.03 billion (2008 est.) country comparison to the world: 113 $21.43 billion (2007) $19.22 billion (2006) note: data are in 2008 US dollars GDP (official exchange rate): $12.85 billion (2008 est.) GDP - real growth rate: 7.5% (2008 est.) country comparison to the world: 24 11.5% (2007 est.) 8.2% (2006 est.) GDP - per capita (PPP): $800 (2008 est.) country comparison to the world: 217 $700 (2007 est.) $600 (2006 est.) note: data are in 2008 US dollars GDP - composition by sector: agriculture: 31% industry: 26% services: 43% Note: data exclude opium production (2008 est.)

Labor force: 15 million (2004 est.) country comparison to the world: 36 Labor force - by occupation: agriculture: 80% industry: 10% Services: 10% (2004 est.) Unemployment rate: 40% (2008 est.) country comparison to the world: 184 Household income or consumption by percentage share: lowest 10%: NA% highest 10%: NA% Budget: revenues: $890 million expenditures: $2.7 billion Note: Afghanistan has also received $2.6 billion from the Reconstruction Trust Fund and $63 million from the Law and Order Trust Fund (2007 est.) Inflation rate (consumer prices): 13% (2007 est.) country comparison to the world: 181 Central bank discount rate: NA Commercial bank prime lending rate: 18.14% (31 December 2007) country comparison to the world: 25 Stock of money: $1.426 billion (31 December 2007) country comparison to the world: 108 Stock of quasi money: $958.6 million (31 December 2007) country comparison to the world: 121

Stock of domestic credit: $20.06 million (31 December 2007) country comparison to the world: 176 Market value of publicly traded shares:

$NA 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: 839 million kWh (2007 est.) country comparison to the world: 149 Electricity - consumption: 1.418 billion kWh (2007 est.) country comparison to the world: 137 Electricity - exports: 0 kWh (2007 est.) Electricity - imports: 608 million kWh (2007 est.) Oil - production: 0 bbl/day (2007 est.) country comparison to the world: 210 Oil - consumption: 5,036 bbl/day (2006 est.) country comparison to the world: 165 Oil - exports: 0 bbl/day (2005) country comparison to the world: 140 Oil - imports: 4,534 bbl/day (2005) country comparison to the world: 162 Oil - proved reserves: 0 bbl (1 January 2006 est.) country comparison to the world: 100 Natural gas - production: 20 million cu m (2006 est.) country comparison to the world: 87

Natural gas - consumption: 20 million cu m (2006 est.) country comparison to the world: 110 Natural gas - exports: 0 cu m (2007 est.) country comparison to the world: 205 Natural gas - imports: 0 cu m (2007 est.) country comparison to the world: 62 Natural gas - proved reserves: 49.55 billion cu m (1 January 2008 est.) country comparison to the world: 65 Current account balance: -$67 million (2007 est.) country comparison to the world: 79 Exports: $327 million; note - not including illicit exports or re-exports (2007) country comparison to the world: 175 Exports - commodities: opium, fruits and nuts, hand-woven carpets, wool, cotton, hides and pelts, precious and semiprecious gems Exports - partners: India 22.8%, Pakistan 21.8%, US 20.5%, Tajikistan 7.2% (2007) Imports: $4.85 billion (2007) country comparison to the world: 118 Imports - commodities: capital goods, food, textiles, petroleum products Imports - partners: Pakistan 36.8%, US 11%, India 5%, Germany 4.2% (2007) Debt - external: $8 billion in bilateral debt, mostly to Russia; Afghanistan has $500 million in debt to multilateral development banks (2004) country comparison to the world: 88 Exchange rates: Afghanis (AFA) per US dollar - 50 (2007), 46 (2006), 47.7 (2005), 48 (2004), 49 (2003)