Afghanistan Economic Update, April 2015

The political and security transition continues to take a heavy toll on Afghanistan’s economy. Economic growth is estimated to have fallen further to 2 percent in 2014 from 3.7 percent in 2013 and an average of 9 percent during 2003-12. Political u...

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Main Author:	World Bank
Format:	Report
Language:	English en_US
Published:	World Bank, Washington, DC 2015
Subjects:	PLEDGES MONETARY POLICY DEFICIT DEPOSIT REGULATORY FRAMEWORK INTEREST INCOME NPL EQUIPMENT ECONOMIC GROWTH DEPOSITS BROAD MONEY FINANCIAL MANAGEMENT CASH BALANCE GOVERNMENT INVESTMENTS INTEREST AGRICULTURAL PRODUCTION GOVERNMENT SPENDING PRODUCERS EXCHANGE ECONOMIC DEVELOPMENTS BALANCE OF PAYMENTS CONSUMER GOODS LABOR FORCE LIQUIDITY RIVER BASINS EXPORTERS REVENUES PORTFOLIO INCENTIVES LOAN TAX BUDGETING RESERVE INFLATION INTERNATIONAL BANK CASH FLOWS FOREIGN INVESTMENTS BUDGET BANK LENDING CENTRAL BANK MATURITY ECONOMIC ACTIVITY TRADE BALANCE OIL PRICES GLOBAL ECONOMY CAPITAL NOTE OIL CURRENCY CROWDING OUT LEGISLATIVE FRAMEWORK CONSOLIDATION PROCESS PRIMARY MARKET INCOME INEQUALITY IMPORT COSTS TRADING RECURRENT EXPENDITURES OPTIONS MACROECONOMIC RISKS CASH RESERVES DEBT CAPITAL NOTES MARKETS PRIVATE INVESTMENT INTERNATIONAL DEVELOPMENT CASH RESERVE LOANS RESERVES NATURAL RESOURCES INVESTMENT STRATEGY SUBSIDIES FINANCE EFFICIENCY TAXES BANKING SECTOR INVESTMENT DECISIONS EXPENDITURE RESOURCES POTENTIAL INVESTORS EQUITY INVESTORS HUMAN CAPITAL FOREIGN EXCHANGE RESERVES ECONOMIC IMPACT GOOD WAGES MARKET CONDITIONS FUTURE CREDIT PURCHASING POWER CPI INVESTOR CONFIDENCE PUBLIC EXPENDITURES EXPENDITURES CAPITAL FLOWS BALANCE SHEET REAL EXCHANGE RATE ENVIRONMENT MARKET POLITICAL UNCERTAINTY FOREIGN EXCHANGE ECONOMICS SECURITIES EXPORTER TAX REVENUE CURRENCIES NON PERFORMING LOANS TRADE GOODS INVESTOR LAND SECURITY POTENTIAL INVESTMENTS FINANCIAL MARKET INVESTMENT COMMERCIAL BANKS INVESTMENT PORTFOLIO SHARE INVESTMENT CLIMATE MICRO-FINANCE POVERTY FINANCIAL MARKETS INVESTMENT ACTIVITY TARIFF POLITICAL STABILITY REVENUE PRIVATE CONSUMPTION EXTERNAL DEBT LEVIES OUTSTANDING AMOUNT INVESTMENTS LENDING TRUST FUND MATURITIES EXCHANGE RATE INSTRUMENT ENVIRONMENTAL COMMODITY PRICES ARREARS PRICES GUARANTEE DEBT RELIEF HUMAN DEVELOPMENT
Online Access:	http://documents.worldbank.org/curated/en/2015/04/24424315/afghanistan-economic-update http://hdl.handle.net/10986/21894

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recordtype	oai_dc
spelling	okr-10986-218942021-06-14T10:22:11Z Afghanistan Economic Update, April 2015 World Bank PLEDGES MONETARY POLICY DEFICIT DEPOSIT REGULATORY FRAMEWORK INTEREST INCOME NPL EQUIPMENT ECONOMIC GROWTH DEPOSITS BROAD MONEY FINANCIAL MANAGEMENT CASH BALANCE GOVERNMENT INVESTMENTS INTEREST AGRICULTURAL PRODUCTION GOVERNMENT SPENDING PRODUCERS EXCHANGE ECONOMIC DEVELOPMENTS BALANCE OF PAYMENTS CONSUMER GOODS LABOR FORCE LIQUIDITY RIVER BASINS EXPORTERS REVENUES PORTFOLIO INCENTIVES LOAN TAX BUDGETING RESERVE INFLATION INTERNATIONAL BANK CASH FLOWS FOREIGN INVESTMENTS BUDGET BANK LENDING CENTRAL BANK MATURITY ECONOMIC ACTIVITY TRADE BALANCE OIL PRICES GLOBAL ECONOMY CAPITAL NOTE OIL CURRENCY CROWDING OUT LEGISLATIVE FRAMEWORK CONSOLIDATION PROCESS PRIMARY MARKET INCOME INEQUALITY IMPORT COSTS TRADING RECURRENT EXPENDITURES OPTIONS MACROECONOMIC RISKS CASH RESERVES DEBT CAPITAL NOTES MARKETS PRIVATE INVESTMENT INTERNATIONAL DEVELOPMENT CASH RESERVE LOANS RESERVES NATURAL RESOURCES INVESTMENT STRATEGY SUBSIDIES FINANCE EFFICIENCY TAXES BANKING SECTOR INVESTMENT DECISIONS EXPENDITURE RESOURCES POTENTIAL INVESTORS EQUITY INVESTORS HUMAN CAPITAL FOREIGN EXCHANGE RESERVES ECONOMIC IMPACT GOOD WAGES MARKET CONDITIONS FUTURE CREDIT PURCHASING POWER CPI INVESTOR CONFIDENCE PUBLIC EXPENDITURES EXPENDITURES CAPITAL FLOWS BALANCE SHEET REAL EXCHANGE RATE ENVIRONMENT MARKET POLITICAL UNCERTAINTY FOREIGN EXCHANGE ECONOMICS SECURITIES EXPORTER TAX REVENUE CURRENCIES NON PERFORMING LOANS TRADE GOODS INVESTOR LAND SECURITY POTENTIAL INVESTMENTS FINANCIAL MARKET INVESTMENT COMMERCIAL BANKS INVESTMENT PORTFOLIO SHARE INVESTMENT CLIMATE MICRO-FINANCE POVERTY FINANCIAL MARKETS INVESTMENT ACTIVITY TARIFF POLITICAL STABILITY REVENUE PRIVATE CONSUMPTION EXTERNAL DEBT LEVIES OUTSTANDING AMOUNT INVESTMENTS LENDING TRUST FUND MATURITIES EXCHANGE RATE INSTRUMENT ENVIRONMENTAL COMMODITY PRICES ARREARS PRICES GUARANTEE DEBT RELIEF HUMAN DEVELOPMENT The political and security transition continues to take a heavy toll on Afghanistan’s economy. Economic growth is estimated to have fallen further to 2 percent in 2014 from 3.7 percent in 2013 and an average of 9 percent during 2003-12. Political uncertainty combined with weak reform progress dealt a further blow in 2014 to investor and consumer confidence, already in a slump from uncertainty building since 2013. As a result, growth in the non-agricultural sectors (manufacturing, construction, and services) is estimated to have fallen further in 2014. The agricultural harvest in 2014 was strong for the third year in a row, but was up only marginally from the bumper year of 2012. Agriculture benefited from robust cereals production thanks both to well distributed, timely rainfall and an increase in irrigated area for wheat cultivation. The growth outlook for 2015 remains weak. Afghanistan faces the dual challenge of restoring confidence in its economic prospects and addressing formidable medium term development challenges. The new government articulated its development vision and a bold reform program through its paper ‘realizing self-reliance: commitments to reforms and renewed partnership’ presented at the London Conference on Afghanistan in December 2014. The paper presents the government’s plans for tackling corruption and building better governance, restoring fiscal sustainability, bolstering private sector confidence, promoting growth, and improving security and political stability. Successful implementation of this bold reform program under difficult circumstances is the major challenge facing Afghanistan. 2015-05-19T15:50:20Z 2015-05-19T15:50:20Z 2015-04 Report http://documents.worldbank.org/curated/en/2015/04/24424315/afghanistan-economic-update http://hdl.handle.net/10986/21894 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Economic & Sector Work Economic & Sector Work :: Economic Updates and Modeling South Asia Afghanistan
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	PLEDGES MONETARY POLICY DEFICIT DEPOSIT REGULATORY FRAMEWORK INTEREST INCOME NPL EQUIPMENT ECONOMIC GROWTH DEPOSITS BROAD MONEY FINANCIAL MANAGEMENT CASH BALANCE GOVERNMENT INVESTMENTS INTEREST AGRICULTURAL PRODUCTION GOVERNMENT SPENDING PRODUCERS EXCHANGE ECONOMIC DEVELOPMENTS BALANCE OF PAYMENTS CONSUMER GOODS LABOR FORCE LIQUIDITY RIVER BASINS EXPORTERS REVENUES PORTFOLIO INCENTIVES LOAN TAX BUDGETING RESERVE INFLATION INTERNATIONAL BANK CASH FLOWS FOREIGN INVESTMENTS BUDGET BANK LENDING CENTRAL BANK MATURITY ECONOMIC ACTIVITY TRADE BALANCE OIL PRICES GLOBAL ECONOMY CAPITAL NOTE OIL CURRENCY CROWDING OUT LEGISLATIVE FRAMEWORK CONSOLIDATION PROCESS PRIMARY MARKET INCOME INEQUALITY IMPORT COSTS TRADING RECURRENT EXPENDITURES OPTIONS MACROECONOMIC RISKS CASH RESERVES DEBT CAPITAL NOTES MARKETS PRIVATE INVESTMENT INTERNATIONAL DEVELOPMENT CASH RESERVE LOANS RESERVES NATURAL RESOURCES INVESTMENT STRATEGY SUBSIDIES FINANCE EFFICIENCY TAXES BANKING SECTOR INVESTMENT DECISIONS EXPENDITURE RESOURCES POTENTIAL INVESTORS EQUITY INVESTORS HUMAN CAPITAL FOREIGN EXCHANGE RESERVES ECONOMIC IMPACT GOOD WAGES MARKET CONDITIONS FUTURE CREDIT PURCHASING POWER CPI INVESTOR CONFIDENCE PUBLIC EXPENDITURES EXPENDITURES CAPITAL FLOWS BALANCE SHEET REAL EXCHANGE RATE ENVIRONMENT MARKET POLITICAL UNCERTAINTY FOREIGN EXCHANGE ECONOMICS SECURITIES EXPORTER TAX REVENUE CURRENCIES NON PERFORMING LOANS TRADE GOODS INVESTOR LAND SECURITY POTENTIAL INVESTMENTS FINANCIAL MARKET INVESTMENT COMMERCIAL BANKS INVESTMENT PORTFOLIO SHARE INVESTMENT CLIMATE MICRO-FINANCE POVERTY FINANCIAL MARKETS INVESTMENT ACTIVITY TARIFF POLITICAL STABILITY REVENUE PRIVATE CONSUMPTION EXTERNAL DEBT LEVIES OUTSTANDING AMOUNT INVESTMENTS LENDING TRUST FUND MATURITIES EXCHANGE RATE INSTRUMENT ENVIRONMENTAL COMMODITY PRICES ARREARS PRICES GUARANTEE DEBT RELIEF HUMAN DEVELOPMENT
spellingShingle	PLEDGES MONETARY POLICY DEFICIT DEPOSIT REGULATORY FRAMEWORK INTEREST INCOME NPL EQUIPMENT ECONOMIC GROWTH DEPOSITS BROAD MONEY FINANCIAL MANAGEMENT CASH BALANCE GOVERNMENT INVESTMENTS INTEREST AGRICULTURAL PRODUCTION GOVERNMENT SPENDING PRODUCERS EXCHANGE ECONOMIC DEVELOPMENTS BALANCE OF PAYMENTS CONSUMER GOODS LABOR FORCE LIQUIDITY RIVER BASINS EXPORTERS REVENUES PORTFOLIO INCENTIVES LOAN TAX BUDGETING RESERVE INFLATION INTERNATIONAL BANK CASH FLOWS FOREIGN INVESTMENTS BUDGET BANK LENDING CENTRAL BANK MATURITY ECONOMIC ACTIVITY TRADE BALANCE OIL PRICES GLOBAL ECONOMY CAPITAL NOTE OIL CURRENCY CROWDING OUT LEGISLATIVE FRAMEWORK CONSOLIDATION PROCESS PRIMARY MARKET INCOME INEQUALITY IMPORT COSTS TRADING RECURRENT EXPENDITURES OPTIONS MACROECONOMIC RISKS CASH RESERVES DEBT CAPITAL NOTES MARKETS PRIVATE INVESTMENT INTERNATIONAL DEVELOPMENT CASH RESERVE LOANS RESERVES NATURAL RESOURCES INVESTMENT STRATEGY SUBSIDIES FINANCE EFFICIENCY TAXES BANKING SECTOR INVESTMENT DECISIONS EXPENDITURE RESOURCES POTENTIAL INVESTORS EQUITY INVESTORS HUMAN CAPITAL FOREIGN EXCHANGE RESERVES ECONOMIC IMPACT GOOD WAGES MARKET CONDITIONS FUTURE CREDIT PURCHASING POWER CPI INVESTOR CONFIDENCE PUBLIC EXPENDITURES EXPENDITURES CAPITAL FLOWS BALANCE SHEET REAL EXCHANGE RATE ENVIRONMENT MARKET POLITICAL UNCERTAINTY FOREIGN EXCHANGE ECONOMICS SECURITIES EXPORTER TAX REVENUE CURRENCIES NON PERFORMING LOANS TRADE GOODS INVESTOR LAND SECURITY POTENTIAL INVESTMENTS FINANCIAL MARKET INVESTMENT COMMERCIAL BANKS INVESTMENT PORTFOLIO SHARE INVESTMENT CLIMATE MICRO-FINANCE POVERTY FINANCIAL MARKETS INVESTMENT ACTIVITY TARIFF POLITICAL STABILITY REVENUE PRIVATE CONSUMPTION EXTERNAL DEBT LEVIES OUTSTANDING AMOUNT INVESTMENTS LENDING TRUST FUND MATURITIES EXCHANGE RATE INSTRUMENT ENVIRONMENTAL COMMODITY PRICES ARREARS PRICES GUARANTEE DEBT RELIEF HUMAN DEVELOPMENT World Bank Afghanistan Economic Update, April 2015
geographic_facet	South Asia Afghanistan
description	The political and security transition continues to take a heavy toll on Afghanistan’s economy. Economic growth is estimated to have fallen further to 2 percent in 2014 from 3.7 percent in 2013 and an average of 9 percent during 2003-12. Political uncertainty combined with weak reform progress dealt a further blow in 2014 to investor and consumer confidence, already in a slump from uncertainty building since 2013. As a result, growth in the non-agricultural sectors (manufacturing, construction, and services) is estimated to have fallen further in 2014. The agricultural harvest in 2014 was strong for the third year in a row, but was up only marginally from the bumper year of 2012. Agriculture benefited from robust cereals production thanks both to well distributed, timely rainfall and an increase in irrigated area for wheat cultivation. The growth outlook for 2015 remains weak. Afghanistan faces the dual challenge of restoring confidence in its economic prospects and addressing formidable medium term development challenges. The new government articulated its development vision and a bold reform program through its paper ‘realizing self-reliance: commitments to reforms and renewed partnership’ presented at the London Conference on Afghanistan in December 2014. The paper presents the government’s plans for tackling corruption and building better governance, restoring fiscal sustainability, bolstering private sector confidence, promoting growth, and improving security and political stability. Successful implementation of this bold reform program under difficult circumstances is the major challenge facing Afghanistan.
format	Report
author	World Bank
author_facet	World Bank
author_sort	World Bank
title	Afghanistan Economic Update, April 2015
title_short	Afghanistan Economic Update, April 2015
title_full	Afghanistan Economic Update, April 2015
title_fullStr	Afghanistan Economic Update, April 2015
title_full_unstemmed	Afghanistan Economic Update, April 2015
title_sort	afghanistan economic update, april 2015
publisher	World Bank, Washington, DC
publishDate	2015
url	http://documents.worldbank.org/curated/en/2015/04/24424315/afghanistan-economic-update http://hdl.handle.net/10986/21894
_version_	1764449569385480192

Afghanistan Economic Update, April 2015

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