Afghanistan Development Update, April 2016
The withdrawal of international security forces since 2014 and continuing political uncertainties have resulted in a significant deceleration to economic growth, with fiscal pressures increasing as security threats mount. However, to a significant...
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| Format: | Report |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2016
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| Online Access: | http://documents.worldbank.org/curated/en/2016/04/26243858/afghanistan-development-update http://hdl.handle.net/10986/24396 |
| Summary: | The withdrawal of international security
forces since 2014 and continuing political uncertainties
have resulted in a significant deceleration to economic
growth, with fiscal pressures increasing as security threats
mount. However, to a significant extent, Afghanistan has
successfully managed the immediate challenges resulting from
the transition. It has maintained macroeconomic stability
and established the conditions for a slow recovery of the
economy. Risks to the economy remain significant, and it is
vital that the Government identify new sources of growth to
replace the declining donor inflows over the longer-term.
The medium-term outlook points towards a slow recovery over
the next three years. The rate of growth is projected to
reach 1.9 percent in 2016, assuming adjustments in firms and
households’ behavior in the context of the deteriorating
security environment. Growth is projected to gradually
increase from 1.9 percent in 2016 to 3.6 percent in 2018, if
the political situation stabilizes and planned reforms are
successfully implemented. On the other hand, any
deterioration in the security environment could weaken
growth prospects, with this risk being the most significant
faced by the country. |
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