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Biblioteca Afghanistan Economic Update, April 2015

Afghanistan Economic Update, April 2015

Afghanistan Economic Update, April 2015

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Date of publication
Maio 2015
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ISBN / Resource ID

The political and security transition
continues to take a heavy toll on Afghanistan’s economy.
Economic growth is estimated to have fallen further to 2
percent in 2014 from 3.7 percent in 2013 and an average of 9
percent during 2003-12. Political uncertainty combined with
weak reform progress dealt a further blow in 2014 to
investor and consumer confidence, already in a slump from
uncertainty building since 2013. As a result, growth in the
non-agricultural sectors (manufacturing, construction, and
services) is estimated to have fallen further in 2014. The
agricultural harvest in 2014 was strong for the third year
in a row, but was up only marginally from the bumper year of
2012. Agriculture benefited from robust cereals production
thanks both to well distributed, timely rainfall and an
increase in irrigated area for wheat cultivation. The growth
outlook for 2015 remains weak. Afghanistan faces the dual
challenge of restoring confidence in its economic prospects
and addressing formidable medium term development
challenges. The new government articulated its development
vision and a bold reform program through its paper
‘realizing self-reliance: commitments to reforms and renewed
partnership’ presented at the London Conference on
Afghanistan in December 2014. The paper presents the
government’s plans for tackling corruption and building
better governance, restoring fiscal sustainability,
bolstering private sector confidence, promoting growth, and
improving security and political stability. Successful
implementation of this bold reform program under difficult
circumstances is the major challenge facing Afghanistan.

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