Afghanistan Economic Update, April 2014
Economic growth slowed considerably to 3.6 percent (estimated) in 2013 despite robust agricultural production, as heightened uncertainty surrounding the political and security transition led to a slump in investor and consumer confidence. Growth is...
| Main Authors: | , |
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| Format: | Economic Updates and Modeling |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2014/04/19425195/afghanistan-economic-update http://hdl.handle.net/10986/18633 |
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okr-10986-18633 |
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| recordtype |
oai_dc |
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Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ACCESS TO FINANCE ACCOUNTABILITY ACCOUNTING ADVICE TO GOVERNMENT AGRICULTURAL COMMODITIES AGRICULTURAL OUTPUT AGRICULTURAL SECTOR AGRICULTURAL SECTORS AGRICULTURE AID DEPENDENT ANNUAL BUDGET AUCTIONS AUDITS BANK FINANCING BANKING SECTOR BID BROAD MONEY BUDGET EXECUTION BUDGET EXPENDITURE BUDGETING BUSINESS CONFIDENCE BUSINESS ENVIRONMENT CAPITAL FLIGHT CAPITAL FORMATION CAPITAL INFLOWS CAPITAL INJECTION CENTRAL BANK COLLATERAL COLLATERAL REGISTRY COMMERCIAL BANKS COMMODITY COMMODITY PRICE CONSUMER CONFIDENCE CORRUPTION CREDITS CURRENCY CURRENT ACCOUNT CURRENT ACCOUNT BALANCE DECISION MAKING DEMAND FOR CREDIT DEMOGRAPHIC DEPOSITS DEVELOPMENT ASSISTANCE DEVELOPMENT POLICY DEVELOPMENT STRATEGY DISPUTE RESOLUTION DOMESTIC MARKET DOMESTIC REVENUE ECONOMIC ACTIVITIES ECONOMIC ACTIVITY ECONOMIC DEPENDENCY ECONOMIC DEVELOPMENTS ECONOMIC GROWTH ECONOMIC OUTLOOK ECONOMIC SECTOR WORK ENROLLMENT ENVIRONMENTAL BENEFITS EXCHANGE RATE EXCHANGE RATE REGIME EXPENDITURE EXPENDITURE OBLIGATIONS EXPENDITURES EXPORTER EXPORTS EXPOSURE EXTERNAL DEBT EXTERNAL TRADE FAMILIES FAMILY BUSINESSES FARMERS FINANCIAL FLOWS FINANCIAL MANAGEMENT FINANCIAL MARKETS FINANCIAL SECTOR FINANCING NEEDS FISCAL FRAMEWORK FISCAL REVENUE FISCAL SUSTAINABILITY FIXED CAPITAL FIXED INVESTMENTS FLOATING EXCHANGE RATE FOOD PRICE FOOD PRICES FOREIGN EXCHANGE FOREIGN EXCHANGE RESERVES FOREIGN GRANTS FOREIGN INVESTMENTS FOREIGN INVESTORS GDP GDP PER CAPITA GINI COEFFICIENT GOOD GOVERNANCE GOVERNMENT INVESTMENTS GROWTH RATE GUARANTEE AGENCY HUMAN CAPITAL INCOME INCOME TAX INCOMES INEQUALITY INFLATION INFRASTRUCTURE DEVELOPMENT INFRASTRUCTURE INVESTMENTS INTERNATIONAL BANK INTERNATIONAL DEVELOPMENT INTERNATIONAL RESERVES INTERNATIONAL SECURITY INVENTORIES INVESTING INVESTMENT ACTIVITY INVESTMENT CLIMATE INVESTMENT CLIMATE REFORMS INVESTMENT EXPENDITURES INVESTMENT PORTFOLIO INVESTMENT STRATEGY JOB CREATION LABOR FORCE PARTICIPATION LABOR MARKET LEGISLATIVE FRAMEWORK LEVEL OF CONFIDENCE LIQUIDITY LOAN M2 MARKET CONDITIONS MARKET PENETRATION MEDIUM-TERM MACROECONOMIC FRAMEWORK MICROFINANCE MINISTRY OF FINANCE MOBILE PHONE MONEY GROWTH MONEY SUPPLY NATIONAL BUDGET NATURAL RESOURCE NATURAL RESOURCES NET CAPITAL OPEN MARKET OPEN MARKET OPERATIONS OUTPUTS OUTREACH PERFORMANCE INDICATORS PHYSICAL CAPITAL PLEDGES POLITICAL ECONOMY PORTFOLIO POVERTY IMPACT POVERTY PROFILE POVERTY REDUCTION PRICE INCREASES PRICE STABILITY PRIVATE INVESTMENT PRIVATE SECTOR PRIVATE SECTOR DEVELOPMENT PRIVATIZATION PROFITABILITY PROGRAMS PUBLIC EXPENDITURE PUBLIC EXPENDITURES PUBLIC FINANCIAL MANAGEMENT PUBLIC FINANCIAL MANAGEMENT SYSTEMS PUBLIC INVESTMENT PUBLIC SERVICE PUBLIC SERVICE DELIVERY PUBLIC SPENDING RAPID GROWTH RATE OF RETURN REAL GDP RECURRENT EXPENDITURES REFORM PROGRAM REGIONAL INTEGRATION REGULATORY ENVIRONMENT REGULATORY FRAMEWORK REGULATORY OVERSIGHT RESERVE REVENUE GROWTH RISK MANAGEMENT RULE OF LAW SALES TAX SAVINGS SERVICE DELIVERY SERVICE PROVIDERS SOCIAL OUTCOMES SOCIAL PROTECTION STRUCTURAL REFORM SUPPLY CHAIN SUPPLY CHAINS SUSTAINABLE DEVELOPMENT TAX TAX ADMINISTRATION TAX BASE TAX EVASION TAX PAYMENTS TAX REVENUES TECHNICAL ASSISTANCE TELEPHONE NETWORKS TIME DEPOSITS TRADE BALANCE TRADE DEFICIT TRANSPARENCY TRUST FUND UNCERTAINTY VALUATION VOLATILITY |
| spellingShingle |
ACCESS TO FINANCE ACCOUNTABILITY ACCOUNTING ADVICE TO GOVERNMENT AGRICULTURAL COMMODITIES AGRICULTURAL OUTPUT AGRICULTURAL SECTOR AGRICULTURAL SECTORS AGRICULTURE AID DEPENDENT ANNUAL BUDGET AUCTIONS AUDITS BANK FINANCING BANKING SECTOR BID BROAD MONEY BUDGET EXECUTION BUDGET EXPENDITURE BUDGETING BUSINESS CONFIDENCE BUSINESS ENVIRONMENT CAPITAL FLIGHT CAPITAL FORMATION CAPITAL INFLOWS CAPITAL INJECTION CENTRAL BANK COLLATERAL COLLATERAL REGISTRY COMMERCIAL BANKS COMMODITY COMMODITY PRICE CONSUMER CONFIDENCE CORRUPTION CREDITS CURRENCY CURRENT ACCOUNT CURRENT ACCOUNT BALANCE DECISION MAKING DEMAND FOR CREDIT DEMOGRAPHIC DEPOSITS DEVELOPMENT ASSISTANCE DEVELOPMENT POLICY DEVELOPMENT STRATEGY DISPUTE RESOLUTION DOMESTIC MARKET DOMESTIC REVENUE ECONOMIC ACTIVITIES ECONOMIC ACTIVITY ECONOMIC DEPENDENCY ECONOMIC DEVELOPMENTS ECONOMIC GROWTH ECONOMIC OUTLOOK ECONOMIC SECTOR WORK ENROLLMENT ENVIRONMENTAL BENEFITS EXCHANGE RATE EXCHANGE RATE REGIME EXPENDITURE EXPENDITURE OBLIGATIONS EXPENDITURES EXPORTER EXPORTS EXPOSURE EXTERNAL DEBT EXTERNAL TRADE FAMILIES FAMILY BUSINESSES FARMERS FINANCIAL FLOWS FINANCIAL MANAGEMENT FINANCIAL MARKETS FINANCIAL SECTOR FINANCING NEEDS FISCAL FRAMEWORK FISCAL REVENUE FISCAL SUSTAINABILITY FIXED CAPITAL FIXED INVESTMENTS FLOATING EXCHANGE RATE FOOD PRICE FOOD PRICES FOREIGN EXCHANGE FOREIGN EXCHANGE RESERVES FOREIGN GRANTS FOREIGN INVESTMENTS FOREIGN INVESTORS GDP GDP PER CAPITA GINI COEFFICIENT GOOD GOVERNANCE GOVERNMENT INVESTMENTS GROWTH RATE GUARANTEE AGENCY HUMAN CAPITAL INCOME INCOME TAX INCOMES INEQUALITY INFLATION INFRASTRUCTURE DEVELOPMENT INFRASTRUCTURE INVESTMENTS INTERNATIONAL BANK INTERNATIONAL DEVELOPMENT INTERNATIONAL RESERVES INTERNATIONAL SECURITY INVENTORIES INVESTING INVESTMENT ACTIVITY INVESTMENT CLIMATE INVESTMENT CLIMATE REFORMS INVESTMENT EXPENDITURES INVESTMENT PORTFOLIO INVESTMENT STRATEGY JOB CREATION LABOR FORCE PARTICIPATION LABOR MARKET LEGISLATIVE FRAMEWORK LEVEL OF CONFIDENCE LIQUIDITY LOAN M2 MARKET CONDITIONS MARKET PENETRATION MEDIUM-TERM MACROECONOMIC FRAMEWORK MICROFINANCE MINISTRY OF FINANCE MOBILE PHONE MONEY GROWTH MONEY SUPPLY NATIONAL BUDGET NATURAL RESOURCE NATURAL RESOURCES NET CAPITAL OPEN MARKET OPEN MARKET OPERATIONS OUTPUTS OUTREACH PERFORMANCE INDICATORS PHYSICAL CAPITAL PLEDGES POLITICAL ECONOMY PORTFOLIO POVERTY IMPACT POVERTY PROFILE POVERTY REDUCTION PRICE INCREASES PRICE STABILITY PRIVATE INVESTMENT PRIVATE SECTOR PRIVATE SECTOR DEVELOPMENT PRIVATIZATION PROFITABILITY PROGRAMS PUBLIC EXPENDITURE PUBLIC EXPENDITURES PUBLIC FINANCIAL MANAGEMENT PUBLIC FINANCIAL MANAGEMENT SYSTEMS PUBLIC INVESTMENT PUBLIC SERVICE PUBLIC SERVICE DELIVERY PUBLIC SPENDING RAPID GROWTH RATE OF RETURN REAL GDP RECURRENT EXPENDITURES REFORM PROGRAM REGIONAL INTEGRATION REGULATORY ENVIRONMENT REGULATORY FRAMEWORK REGULATORY OVERSIGHT RESERVE REVENUE GROWTH RISK MANAGEMENT RULE OF LAW SALES TAX SAVINGS SERVICE DELIVERY SERVICE PROVIDERS SOCIAL OUTCOMES SOCIAL PROTECTION STRUCTURAL REFORM SUPPLY CHAIN SUPPLY CHAINS SUSTAINABLE DEVELOPMENT TAX TAX ADMINISTRATION TAX BASE TAX EVASION TAX PAYMENTS TAX REVENUES TECHNICAL ASSISTANCE TELEPHONE NETWORKS TIME DEPOSITS TRADE BALANCE TRADE DEFICIT TRANSPARENCY TRUST FUND UNCERTAINTY VALUATION VOLATILITY Joya, Omar Khan, Faruk Afghanistan Economic Update, April 2014 |
| geographic_facet |
South Asia Afghanistan |
| description |
Economic growth slowed considerably to
3.6 percent (estimated) in 2013 despite robust agricultural
production, as heightened uncertainty surrounding the
political and security transition led to a slump in investor
and consumer confidence. Growth is projected to remain weak
in 2014, while a smooth political and security transition
would help restore confidence in the economy and enable a
pickup in growth in 2015. Revenue collection continued to
weaken in 2013, while Afghanistan's large security
expenditure obligations and high aid dependence pose the
risk of crowding out important civilian operating and
development spending. Domestic revenues declined to 9.5
percent of GDP in 2013 from 10.3 percent in 2012 and the
peak of 11.6 percent in 2011. The decline in revenue
collections is a result of the economic slowdown as well as
weaknesses in enforcement in both tax and customs
administration. In light of tight resources, austerity
measures in 2013 disproportionately affected civilian
expenditures as security expenditures have continued to
grow. A concerted effort will be required going forward to
improve revenue mobilization, while at the same time
safeguarding important civilian spending. In addition to
managing the transition related uncertainty and
underperformance, Afghanistan will need to stay focused on
its medium term structural reform goals, which include: (i)
ensuring fiscal sustainability by mobilizing revenue,
securing grant assistance, and safeguarding non-security
expenditures; (ii) supporting inclusive and job-creating
private-sector led growth by unlocking the potential of the
agriculture, services, and natural resource sectors and by
tapping the potential of regional integration; (iii)
continuing to improve upon the still low levels of human
capital and skills; and (iv) continuing to strengthen
institutions and governance. |
| format |
Economic & Sector Work :: Economic Updates and Modeling |
| author |
Joya, Omar Khan, Faruk |
| author_facet |
Joya, Omar Khan, Faruk |
| author_sort |
Joya, Omar |
| title |
Afghanistan Economic Update, April 2014 |
| title_short |
Afghanistan Economic Update, April 2014 |
| title_full |
Afghanistan Economic Update, April 2014 |
| title_fullStr |
Afghanistan Economic Update, April 2014 |
| title_full_unstemmed |
Afghanistan Economic Update, April 2014 |
| title_sort |
afghanistan economic update, april 2014 |
| publisher |
World Bank, Washington, DC |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2014/04/19425195/afghanistan-economic-update http://hdl.handle.net/10986/18633 |
| _version_ |
1764441756940632064 |
| spelling |
okr-10986-186332021-04-23T14:03:47Z Afghanistan Economic Update, April 2014 Joya, Omar Khan, Faruk ACCESS TO FINANCE ACCOUNTABILITY ACCOUNTING ADVICE TO GOVERNMENT AGRICULTURAL COMMODITIES AGRICULTURAL OUTPUT AGRICULTURAL SECTOR AGRICULTURAL SECTORS AGRICULTURE AID DEPENDENT ANNUAL BUDGET AUCTIONS AUDITS BANK FINANCING BANKING SECTOR BID BROAD MONEY BUDGET EXECUTION BUDGET EXPENDITURE BUDGETING BUSINESS CONFIDENCE BUSINESS ENVIRONMENT CAPITAL FLIGHT CAPITAL FORMATION CAPITAL INFLOWS CAPITAL INJECTION CENTRAL BANK COLLATERAL COLLATERAL REGISTRY COMMERCIAL BANKS COMMODITY COMMODITY PRICE CONSUMER CONFIDENCE CORRUPTION CREDITS CURRENCY CURRENT ACCOUNT CURRENT ACCOUNT BALANCE DECISION MAKING DEMAND FOR CREDIT DEMOGRAPHIC DEPOSITS DEVELOPMENT ASSISTANCE DEVELOPMENT POLICY DEVELOPMENT STRATEGY DISPUTE RESOLUTION DOMESTIC MARKET DOMESTIC REVENUE ECONOMIC ACTIVITIES ECONOMIC ACTIVITY ECONOMIC DEPENDENCY ECONOMIC DEVELOPMENTS ECONOMIC GROWTH ECONOMIC OUTLOOK ECONOMIC SECTOR WORK ENROLLMENT ENVIRONMENTAL BENEFITS EXCHANGE RATE EXCHANGE RATE REGIME EXPENDITURE EXPENDITURE OBLIGATIONS EXPENDITURES EXPORTER EXPORTS EXPOSURE EXTERNAL DEBT EXTERNAL TRADE FAMILIES FAMILY BUSINESSES FARMERS FINANCIAL FLOWS FINANCIAL MANAGEMENT FINANCIAL MARKETS FINANCIAL SECTOR FINANCING NEEDS FISCAL FRAMEWORK FISCAL REVENUE FISCAL SUSTAINABILITY FIXED CAPITAL FIXED INVESTMENTS FLOATING EXCHANGE RATE FOOD PRICE FOOD PRICES FOREIGN EXCHANGE FOREIGN EXCHANGE RESERVES FOREIGN GRANTS FOREIGN INVESTMENTS FOREIGN INVESTORS GDP GDP PER CAPITA GINI COEFFICIENT GOOD GOVERNANCE GOVERNMENT INVESTMENTS GROWTH RATE GUARANTEE AGENCY HUMAN CAPITAL INCOME INCOME TAX INCOMES INEQUALITY INFLATION INFRASTRUCTURE DEVELOPMENT INFRASTRUCTURE INVESTMENTS INTERNATIONAL BANK INTERNATIONAL DEVELOPMENT INTERNATIONAL RESERVES INTERNATIONAL SECURITY INVENTORIES INVESTING INVESTMENT ACTIVITY INVESTMENT CLIMATE INVESTMENT CLIMATE REFORMS INVESTMENT EXPENDITURES INVESTMENT PORTFOLIO INVESTMENT STRATEGY JOB CREATION LABOR FORCE PARTICIPATION LABOR MARKET LEGISLATIVE FRAMEWORK LEVEL OF CONFIDENCE LIQUIDITY LOAN M2 MARKET CONDITIONS MARKET PENETRATION MEDIUM-TERM MACROECONOMIC FRAMEWORK MICROFINANCE MINISTRY OF FINANCE MOBILE PHONE MONEY GROWTH MONEY SUPPLY NATIONAL BUDGET NATURAL RESOURCE NATURAL RESOURCES NET CAPITAL OPEN MARKET OPEN MARKET OPERATIONS OUTPUTS OUTREACH PERFORMANCE INDICATORS PHYSICAL CAPITAL PLEDGES POLITICAL ECONOMY PORTFOLIO POVERTY IMPACT POVERTY PROFILE POVERTY REDUCTION PRICE INCREASES PRICE STABILITY PRIVATE INVESTMENT PRIVATE SECTOR PRIVATE SECTOR DEVELOPMENT PRIVATIZATION PROFITABILITY PROGRAMS PUBLIC EXPENDITURE PUBLIC EXPENDITURES PUBLIC FINANCIAL MANAGEMENT PUBLIC FINANCIAL MANAGEMENT SYSTEMS PUBLIC INVESTMENT PUBLIC SERVICE PUBLIC SERVICE DELIVERY PUBLIC SPENDING RAPID GROWTH RATE OF RETURN REAL GDP RECURRENT EXPENDITURES REFORM PROGRAM REGIONAL INTEGRATION REGULATORY ENVIRONMENT REGULATORY FRAMEWORK REGULATORY OVERSIGHT RESERVE REVENUE GROWTH RISK MANAGEMENT RULE OF LAW SALES TAX SAVINGS SERVICE DELIVERY SERVICE PROVIDERS SOCIAL OUTCOMES SOCIAL PROTECTION STRUCTURAL REFORM SUPPLY CHAIN SUPPLY CHAINS SUSTAINABLE DEVELOPMENT TAX TAX ADMINISTRATION TAX BASE TAX EVASION TAX PAYMENTS TAX REVENUES TECHNICAL ASSISTANCE TELEPHONE NETWORKS TIME DEPOSITS TRADE BALANCE TRADE DEFICIT TRANSPARENCY TRUST FUND UNCERTAINTY VALUATION VOLATILITY Economic growth slowed considerably to 3.6 percent (estimated) in 2013 despite robust agricultural production, as heightened uncertainty surrounding the political and security transition led to a slump in investor and consumer confidence. Growth is projected to remain weak in 2014, while a smooth political and security transition would help restore confidence in the economy and enable a pickup in growth in 2015. Revenue collection continued to weaken in 2013, while Afghanistan's large security expenditure obligations and high aid dependence pose the risk of crowding out important civilian operating and development spending. Domestic revenues declined to 9.5 percent of GDP in 2013 from 10.3 percent in 2012 and the peak of 11.6 percent in 2011. The decline in revenue collections is a result of the economic slowdown as well as weaknesses in enforcement in both tax and customs administration. In light of tight resources, austerity measures in 2013 disproportionately affected civilian expenditures as security expenditures have continued to grow. A concerted effort will be required going forward to improve revenue mobilization, while at the same time safeguarding important civilian spending. In addition to managing the transition related uncertainty and underperformance, Afghanistan will need to stay focused on its medium term structural reform goals, which include: (i) ensuring fiscal sustainability by mobilizing revenue, securing grant assistance, and safeguarding non-security expenditures; (ii) supporting inclusive and job-creating private-sector led growth by unlocking the potential of the agriculture, services, and natural resource sectors and by tapping the potential of regional integration; (iii) continuing to improve upon the still low levels of human capital and skills; and (iv) continuing to strengthen institutions and governance. 2014-06-11T20:26:43Z 2014-06-11T20:26:43Z 2014-04 http://documents.worldbank.org/curated/en/2014/04/19425195/afghanistan-economic-update http://hdl.handle.net/10986/18633 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Economic & Sector Work :: Economic Updates and Modeling South Asia Afghanistan |