Afghanistan

Economics, Political, and Trade Overview

Source: Feb 10, 2022 Economist Intelligence Unit

Afghanistan - In Short.

Overview of Afghanistan

Ahmad Shah DURRANI unified the Pashtun tribes and founded Afghanistan in 1747. The country served as a buffer between the British and Russian Empires until it won independence from notional British control in 1919. A brief experiment in increased democracy ended in a 1973 coup and a 1978 communist countercoup. The Soviet Union invaded in 1979 to support the tottering Afghan communist regime, touching off a long and destructive war. The USSR withdrew in 1989 under relentless pressure by internationally supported anti-communist mujahidin rebels. A series of subsequent civil wars saw Kabul finally fall in 1996 to the Taliban, a hardline Pakistani-sponsored movement that emerged in 1994 to end the country’s civil war and anarchy. Following the 11 September 2001 terrorist attacks, a US, Allied, and anti-Taliban Northern Alliance military action toppled the Taliban for sheltering Usama BIN LADIN. A UN-sponsored Bonn Conference in 2001 established a process for political reconstruction that included the adoption of a new constitution, a presidential election in 2004, and National Assembly elections in 2005. In December 2004, Hamid KARZAI became the first democratically elected president of Afghanistan, and the National Assembly was inaugurated the following December. KARZAI was reelected in August 2009 for a second term. The 2014 presidential election was the country’s first to include a runoff, which featured the top two vote-getters from the first round, Abdullah ABDULLAH and Ashraf GHANI. Throughout the summer of 2014, their campaigns disputed the results and traded accusations of fraud, leading to a US-led diplomatic intervention that included a full vote audit as well as political negotiations between the two camps. In September 2014, GHANI and ABDULLAH agreed to form the Government of National Unity, with GHANI inaugurated as president and ABDULLAH elevated to the newly-created position of chief executive officer. The day after the inauguration, the GHANI administration signed the US-Afghan Bilateral Security Agreement and NATO Status of Forces Agreement, which provide the legal basis for the post-2014 international military presence in Afghanistan. After two postponements, the next presidential election was held in September 2019. The Taliban remains a serious challenge for the Afghan Government in almost every province. The Taliban still considers itself the rightful government of Afghanistan, and it remains a capable and confident insurgent force fighting for the withdrawal of foreign military forces from Afghanistan, establishment of sharia law, and rewriting of the Afghan constitution. In 2019, negotiations between the US and the Taliban in Doha entered their highest level yet, building on momentum that began in late 2018. Underlying the negotiations is the unsettled state of Afghan politics, and prospects for a sustainable political settlement remain unclear.
Value
Country Full Name
Afghanistan
Country Code
AFG
Region
South Asia
Income Group
Low income
Currency Unit
GDP
20116137326
Population
38928341
Land Area
652860
Net National Income Per Capita
474.1735719
GDP per Capita (PPP)
2078.648615

2020 GDP Growth Rate (Current USD)

2020 GDP Per Capita (Current USD)

2020 Urbanization Rate (%)

2020 Total Fertility Rate (Birth Per Woman)

Doing Business Score (100= Most Friendly)

Afghanistan - Economic

Economy of Afghanistan

Prior to 2001, Afghanistan was an extremely poor, landlocked, and foreign aid-dependent country. Increased domestic economic activity occurred following the US-led invasion, as well as significant international economic development assistance. This increased activity expanded access to water, electricity, sanitation, education, and health services, and fostered consistent growth in government revenues since 2014. While international security forces have been drawing down since 2012, with much higher U.S. forces’ drawdowns occurring since 2017, economic progress continues, albeit uneven across sectors and key economic indicators. After recovering from the 2018 drought and growing 3.9% in 2019, political instability, expiring international financial commitments, and the COVID-19 pandemic have wrought significant adversity on the Afghan economy, with a projected 5% contraction. Current political parties’ power-sharing agreement following the September 2019 presidential elections as well as ongoing Taliban attacks and peace talks have led to Afghan economic instability. This instability, coupled with expiring international grant and assistance, endangers recent fiscal gains and has led to more internally displaced persons. In November 2020, Afghanistan secured $12 billion in additional international aid for 2021-2025, much of which is conditional upon Taliban peace progress. Additionally, Afghanistan continues to experience influxes of repatriating Afghanis, mostly from Iran, significantly straining economic and security institutions. Afghanistan’s trade deficit remains at approximately 31% of GDP and is highly dependent on financing through grants and aid. While Afghan agricultural growth remains consistent, recent industrial and services growth have been enormously impacted by COVID-19 lockdowns and trade cessations. While trade with the People’s Republic of China has rapidly expanded in recent years, Afghanistan still relies heavily upon India and Pakistan as export partners but is more diverse in its import partners. Furthermore, Afghanistan still struggles to effectively enforce business contracts, facilitate easy tax collection, and enable greater international trade for domestic enterprises.Current Afghan priorities focus on the following goals: Securing international economic agreements, many of which are contingent on Taliban peace progress; Increasing exports to $2 billion USD by 2023; Continuing to expand government revenue collection; Countering corruption and navigating challenges from the power-sharing agreement; and Developing a strong private sector that can empower the economy.

Unemployment Rate

Inflation Rate

Afghanistan - GDP Composition

GDP Composiiton & Value Added of Afghanistan

Last Updated: Jan, 2021, Updated For 2020.

Afghanistan - GDP, Value Added

Demographics of Afghanistan

populations tend to cluster in the foothills and periphery of the rugged Hindu Kush range; smaller groups are found in many of the country’s interior valleys; in general, the east is more densely settled, while the south is sparsely populated
Geographic Location

Southern Asia, north and west of Pakistan, east of Iran

Races

Current reliable statistical data on ethnicity in Afghanistan are not available; Afghanistan's 2004 Constitution cited Pashtun, Tajik, Hazara, Uzbek, Turkman, Baluch, Pachaie, Nuristani, Aymaq, Arab, Qirghiz, Qizilbash, Gujur, and Brahwui ethnicities; Afghanistan has dozens of other small ethnic groups

Languages

Afghan Persian or Dari (official, lingua franca) 77%, Pashto (official) 48%, Uzbeki 11%, English 6%, Turkmani 3%, Urdu 3%, Pachaie 1%, Nuristani 1%, Arabic 1%, Balochi 1%, other <1% (2020 est.)major-language

Religion

Sunni 84.7 - 89.7%, Shia 10 - 15%, other <0.3% (2009 est.)

Dependency & Expectancy of Afghanistan

Last Updated: Jan, 2021

Dependency Ratio

Expectancy

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Afghanistan - Social Media Briefing

Afghanistan - Social Media & Social Commerce

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Politics & Policies of Afghanistan

2021 Policies Overview

Updated Coming in March 2021 after our team finish summarizing countries policy.

International Organizations

ADB, CICA, CP, ECO, EITI (candidate country), FAO, G-77, IAEA, IBRD, ICAO, ICC (NGOs), ICCt, ICRM, IDA, IDB, IFAD, IFC, IFRCS, ILO, IMF, Interpol, IOC, IOM, IPU, ISO (correspondent), ITSO, ITU, ITUC (NGOs), MIGA, NAM, OIC, OPCW, OSCE (partner), SAARC, SACEP, SCO (dialogue member), UN, UNAMA, UNCTAD, UNESCO, UNHCR, UNIDO, UNWTO, UPU, WCO, WFTU (NGOs), WHO, WIPO, WMO, WTO

Import of Afghanistan

Export of Afghanistan

Import Destination

Export Destination