OCTOBER 2025 – THE WORLD BANK
Afghanistan’s economy remains under significant strain, facing multiple simultaneous shocks. Recent
adverse events—including the mass return of migrants and refugees, severe drought, earthquakes in
eastern and northern provinces, temporary disruptions to internet and telecommunication services, and
shifting regional priorities—have compounded existing vulnerabilities. Although modest economic
expansion is supported by low inflation and stronger revenues, rapid population growth driven by
returnees from Iran and Pakistan, alongside weak investment, continues to weigh on average income
growth.
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