Post on 17-Jul-2015
Outline
• Economy overview
• Contribution of different sectors in
economy(agriculture , services , industry)
• foreign investment
• GDP
• Government budget
• Inflation
• Trade
Economy overview
• Since late 2001,afghanistan has become a
major site of concentration of international aid
totaling around US$286.4 billions , or US$9,426
per afghan citizen
• The economy has improved significantly since
the fall of the Taliban regime in 2001 largely
because of infusion of international assistance
•
Cont’d
• Despite the progress of past years , Afghanistan
is extremely poor , and highly dependent on
foreign aid
• Much the population still suffering from shortage
of housing , clean water , electricity and etc.
• The international community remains committed
to Afghanistan's development , pledging over
$67 billions at nine donors
Contribution of different sectors
• Agriculture:• Agriculture traditionally has been the foundation of
Afghanistan's economy , employing as much as 80% of
the workforce and contributing half of GDP
• In the early 2000s half of the arable land was
uncultivated , due to limited water supply and in begging
of 2003 agriculture output increased because of
international aid
Cont’d
• The main legal crops are : wheat , vegetable , grapes ,
rice , corn , fruits and potato's
• The main types of livestock are cattle , sheep , and
goats; cow’s milk is the most valuable product of
livestock raising
• As of September 2009 , more than 53000 agricultural
loans ranging from approximately $200 to $2 million had
gone to small businesses
services
• Since 2002 the government has encouraged
recovery of a formal banking system and a set
commercial banking laws was passed in 2003
• And banks from Britain , India and Pakistan
opened their branches in Kabul
• In mid-2004 (AIB) begin operating with the
backing of the Asian development bank and
75% ownership by afghan businessmen
•
Cont’d
• The smuggling and other illegal economic
activity that were pervasive during war periods
left a very strong residual black-market
• Specializing in moving goods illegally into
Pakistan and moving illegal drugs north worth
into central Asia and ultimately Russia and
western Europe
• And government established 20 tourist sites by
2010
Industry and manufacturing
• In early 2000s, foreign investment in the industrial sector
focused on small and medium –sized enterprises ,
predominantly in telecommunications
• revival projects have concentrated on agricultural
processing and carpet enterprise
• Some small plants in Herat , Kabul and Mazar-e-Sharif
produced textiles , leather goods and processed foods
Foreign investment
• To encourage foreign investment , in 2002 the
government began allowing 100% foreign
ownership of afghan enterprise
• Offering substantial tax , benefits and unlimited
transfer of assets out of country
• The Afghanistan investment support agency was
established in 2003 to centralize foreign
investment activities
Cont’d
• Further investment sectors are : telecommunication ,
energy , agricultural and healthcare system
• In 2004 foreign direct investment totaled an estimated
US $351 million
• The largest investors are Pakistan , Iran , china, united
Arab Emirates , Central Asian countries , members of
the European union and the United States .
Gross domestic product (GDP)
• excluding illegal poppy production , for fiscal year (FY)
2004-2005 Afghanistan GDP was estimated at US$5.22
billion or US$232 per capita
• Agriculture contributed 38%
• Service contributed 38%
• Industry and mining 24%
• Following the economic stand still the late 1990s
Cont’d
• GDP growth rate in early 2000s have been
very high :28.6%
• In FY 2002-2003 , 16%
• 2004-2005 , 8%
• However the starting point for such figures
are very low
Government budget
• In early 2000s , Afghanistan GDP revenue was 4% , one
of the lowest in the world
• Domestic revenue were not expected to match the
government operating cost until 2011
• Afghanistan recorded a government budget deficit of
14.40% of the country’s GDP in 2013
• Government budget in Afghanistan averaged -20.13% of
GDP from 2006 until 2013
Inflation
• Under the pro-soviet regimes of the 1980’s , inflation was
high but limited by government controls and inflation
reached 150% per year during civil wars of the early
1990s
• And it remained high under Taliban regime
• After the currency reform of 2002, inflation averaged
10% per year for the first two years and it rose to 16.3%
in 2005
• Afghanistan inflation rate recorded at 5.60% in march of
2014
Trade
• Afghanistan has been at the junction of trade routes
between central , south and east Asia for over 3000
years
• Major imports for domestic use include : agricultural
inputs , rice , wheat , fuel and cooking oil
• Major indigenous exports include : fruit and nuts, primary
material and timber
• Balance of trade in Afghanistan averaged -3425.34 USD
Million from 2003 until 2013