Afghanistan Economy Profile 2009

Economy - overview

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)

$22.27 billion (2008 est.)
$21.53 billion (2007 est.)
$19.21 billion (2006 est.)
note: data are in 2008 US dollars

GDP (official exchange rate)

$12.06 billion (2008 est.)

GDP - real growth rate

3.4% (2008 est.)
12.1% (2007 est.)
8.2% (2006 est.)

GDP - per capita (PPP)

$700 (2008 est.)
$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.)

Population below poverty line

53% (2003)

Labor force

15 million (2004 est.)

Labor force - by occupation

agriculture: 80%
industry: 10%
services: 10% (2004 est.)

Unemployment rate

40% (2008 est.)
40% (2005 est.)

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.)

Commercial bank prime lending rate

NA% (31 December 2008)
18.14% (31 December 2007)

Stock of money

$NA (31 December 2008)
$1.426 billion (31 December 2007)

Stock of quasi money

$NA (31 December 2008)
$958.6 million (31 December 2007)

Stock of domestic credit

$NA (31 December 2008)
$12.04 million (31 December 2007)

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.)

Electricity - production by source

fossil fuel: 36.3%
hydro: 63.7%
nuclear: 0%
other: 0% (2001)

Electricity - consumption

1.418 billion kWh (2007 est.)

Electricity - exports

0 kWh (2007 est.)

Electricity - imports

608 million kWh (2007 est.)

Oil - production

0 bbl/day (2007 est.)

Oil - consumption

5,036 bbl/day (2006 est.)

Oil - imports

4,534 bbl/day (2005)

Oil - exports

0 bbl/day (2005)

Oil - proved reserves

0 bbl (1 January 2006 est.)

Natural gas - production

20 million cu m (2006 est.)

Natural gas - consumption

20 million cu m (2006 est.)

Natural gas - exports

0 cu m (2007 est.)

Natural gas - imports

0 cu m (2007 est.)

Natural gas - proved reserves

49.55 billion cu m (1 January 2008 est.)

Current Account Balance

$-67 million (2007 est.)

Agriculture - products

opium, wheat, fruits, nuts; wool, mutton, sheepskins, lambskins

Exports

$327 million (2007)
$274 million (2006); note - not including illicit exports or reexports

Exports - commodities

opium, fruits and nuts, handwoven carpets, wool, cotton, hides and pelts, precious and semi-precious gems

Exports - partners

India 21.1%, Pakistan 20.1%, US 18.8%, Netherlands 7.9%, Tajikistan 6.7% (2008)

Imports

$4.85 billion (2007)
$3.823 billion (2006)

Imports - commodities

capital goods, food, textiles, petroleum products

Imports - partners

Pakistan 35.8%, US 9.2%, Germany 7.5%, India 4.8% (2008)

Debt - external

$8 billion (2004)

Market value of publicly traded shares

$NA

Economic aid - recipient

$2.775 billion (2005)

Currency (code)

AFA

Currency (code)

afghani (AFA)

Exchange rates

afghanis (AFA) per US dollar - 50 (2007), 46 (2006), 47.7 (2005), 48 (2004), 49 (2003)

Fiscal year

21 March - 20 March