Afganistan

Afganistan

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Middle East & North Africa Low income AFG

Economic Overview of Afghanistan

# Economic Profile of Afghanistan

Afghanistan is a low-income country located in South Asia and is one of the countries facing the most difficult economic circumstances in the world. As of 2024, the Gross Domestic Product (GDP) is estimated at approximately $20 billion, recording an extremely low per capita income relative to a population of approximately 40 million. Agriculture forms the core of the economy, with the agricultural sector accounting for approximately 23% of GDP and more than 60% of the population engaged in agriculture. Major products include wheat, corn, and cotton, with most being subsistence agriculture.

A noteworthy aspect of the economic structure is the presence of opium production. Afghanistan is one of the world's leading producers of poppy cultivation, and the illegal drug industry is estimated to account for more than 10% of GDP. This industry places a heavy burden on national finances and is a critical issue hindering economic transparency and healthy development. The country is also rich in mineral resources, with confirmed deposits of copper, iron ore, and lithium, but these remain underutilized due to lack of development infrastructure and political instability.

Following the Taliban's return to power in 2021, the Afghan economy has faced a severe crisis. International sanctions and reduced aid have frozen foreign reserves and severely impaired central bank functions. The Afghan currency has plummeted rapidly and inflation is accelerating. The unemployment rate exceeds 30%, and poverty is expanding. According to the United Nations, 97% of the population faces food insecurity crisis.

The outlook is extremely grim, and recovery of international recognition, counterterrorism measures, and state capacity building are essential. Economic recovery in Afghanistan requires long-term international cooperation and domestic stabilization as preconditions.

Economy

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Demographics

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Labor

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Trade & Investment

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Fiscal

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Social

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Technology

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