The economy of Afghanistan shows improvement three years after the Taliban came to power?

Three years after the Taliban came to power in Afghanistan, unexpected results are being observed: despite serious problems in various sectors, the country’s economy has begun to show signs of recovery.

According to the latest data, Afghanistan’s economy is transitioning from stagnation to stability, which contradicts assumptions about the current government’s inability to prevent economic collapse. The World Bank’s report for August 2023 noted signs of economic stability and even slight improvement. Banking operations have partially resumed in the country, the number of companies has increased, and living conditions for the population have somewhat improved.

However, experts indicate that Afghanistan still lacks key drivers for long-term economic growth. In particular, the report recommended that the Taliban focus on combating poverty, high levels of food insecurity, and easing restrictions, especially regarding women, whose work is important for the economy.

“Afghanistan’s economy is fragile, largely dependent on external support, and the private sector is weak. To recover, the country needs to prioritize spending on human capital, basic services, and resilience to climate change, as well as address gender policy,” said Melinda Good, the World Bank’s director in Afghanistan.

Experts also emphasize the need to combat corruption at customs, smuggling, bribery, and capital flight, which reached $5 billion per year under the previous government. One positive signal is the decrease in inflation: according to the report from the Afghanistan Future Fund, the annual inflation rate in the country decreased by 9.7% by February 2024. The World Bank also recorded a 14.4% drop in food prices and a 4.4% drop in non-food prices.

Earlier, media also reported an increase in the average salary in Afghanistan, which reached $200, higher than in neighboring Tajikistan, where the average salary is $170.