In its latest report on the economic outlook of the Middle East, North Africa, Afghanistan, and Pakistan, the World Bank has stated that Afghanistan’s per capita GDP has declined by 5.6 percent.
According to the report, population growth in Afghanistan has outpaced economic growth, leading to increased inflationary pressures.
The report emphasizes that this situation highlights an urgent need to strengthen governance, reinforce macroeconomic foundations, and take action to boost job creation and long-term economic resilience in Afghanistan.
According to the World Bank, overall economic growth in the region is expected to decline from 4 percent in 2025 to 1.8 percent in 2026.
AESF Economic Insights,
This alarming warning raised by international organizations such as World Bank, reflects a deeper structural imbalance, where population growth is outpacing economic expansion, leading to diminish per capita income and rising pressure on limited resources. This situation aligns with concerns raised by United Nations Children’s Fund (UNICEF), which has repeatedly highlighted increasing poverty, child malnutrition, and vulnerability among Afghan households indicating that economic decline is directly translating into human development challenges. From an economic perspective, this underscores weak productivity growth and insufficient job creation, which are critical for improving living standards. In the short term, stabilizing prices and supporting livelihoods are essential, but in the long term, Afghanistan must strengthen governance, invest in human capital, and create employment opportunities to build resilience economic; otherwise, continued economic stagnation will deepen both poverty and social fragility.
By: Obaidurahman Niazi AESFnews Reporter
