Afghanistan Economic Update, October 2011
Afghanistan's economy is growing strongly. The growth drivers in recent years have been above-average agricultural production, strong growth in construction and transportation, and security spending enabled by large aid flows, especially in FY...
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| Format: | Report |
| Language: | English en_US |
| Published: |
Washington, DC
2017
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| Online Access: | http://documents.worldbank.org/curated/en/852081468184759655/Afghanistan-economic-update http://hdl.handle.net/10986/27073 |
| Summary: | Afghanistan's economy is growing
strongly. The growth drivers in recent years have been
above-average agricultural production, strong growth in
construction and transportation, and security spending
enabled by large aid flows, especially in FY2009/10. Real
Gross Domestic Product (GDP) growth reached 8.4 percent in
FY2010/11. Afghanistan's fiscal position is
strengthening. In the last three years revenues grew by an
average of 34 percent p.a., thanks to improvements in
customs and tax administration. Larger increases are
expected once mining operations and with the introduction of
a value-added tax in FY2014/15. However, government
expenditures will also increase in the coming years due to
higher security spending, the roll out of pay-and-grading
reforms for the civil service, rising recurrent obligations
from large donor-supported projects (including those
financed outside of the core budget) and the fiscal costs of
the Kabul Bank bail-out. The first phase of the handover of
security responsibilities to Afghan national security forces
in six locations has been completed. |
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