Economy of Afghanistan

Afghanistan's economy is recovering from decades of conflict, and has improved after the fall of the Taliban regime in 2001, especially due to foreign aid, the recovery of agriculture and the growth of the sector of services. The gross domestic product had a growth peak of 21.4% in 2009. However, since 2012 growth has slowed and GDP per capita has remained practically constant.

History

Metallurgical in Kabul, during the 1950s.

During the monarchy and the Republic of Daoud, the industrial sector grew in a mainly agricultural country. However, before the Revolution there were only 35,000 workers in a population of approximately 17 million. Feudalism was dominant: 5% of the owners owned more than 50% of the fertile land. In Afghanistan around 97 % of the women and 90% of the men were illiterate; about 5% of the owners owned more than 50% of the fertile land; out of 17 million inhabitants there were 35 thousand workers but 250 thousand mullahs; few industries and roads; life expectancy was 42 years, infant mortality was the highest in the world; half the population suffered from tuberculosis, a quarter from malaria, etc.

In 1978 the Saur Revolution took place, which established the communist party in power. President Nur Mohammad Taraki initiated a land reform that ran into serious problems.^{[citation needed]}

During the 1980s the proportion of the extracting and transforming industry grew from 3.3% (1978) to 10% (1985) of GNP. In the same period, investments in national industry exceeded 55 billion Afghanis, or 80% of all investments made in the economy in the 20 years preceding the Revolution. In 1984, investments in the state and mixed sectors increased by 50%. That year 100 new companies were launched. Among the largest enterprises built are the Kharkuduk gas field, the Puli-Humri reinforced concrete pillar factory, the Kandahar textile company, the Herat cement factory, the Kabul truck technical entertainment company and the bridge. for rail and trucks over the Amu-Daria river. In 1984 the harvest exceeded the rates prior to the Revolution.

The Chamber of Commerce and Industry was founded to bring together representatives of private capital, within which more than twenty merchant associations functioned.With the help of the Soviet Union in the state sector of the economy, nearly two hundred companies were built that provided most of the global production. Among them were the hydroelectric power stations in Naghlu and Puli-Humri, the nitrogen fertilizer factory in Mazar-i-Sharif, the bakery company and the prefabricated house company in Kabul.

With credits from Czechoslovakia, a trolleybus line was created in Kabul, coal mines were equipped, and a cement factory was built in Herat. With those from Bulgaria, a poultry farm, sheep and silk farms were built, and a poultry company, a dairy farm, brick and fur tanning factories and two fish companies were built together. Democratic Germany participated in the creation of an automatic telephone exchange in Kabul, in the laying of communication lines and in the expansion of the electricity supply system in several cities. Hungary participated in the construction of a drug company.

In the early '80s, trade between Afghanistan and Japan increased by 33% and both countries created the joint trading firm Nichi-Afghan Limited. At the same time, trade with India increased by 50%.

The civil war caused severe damage to the Afghan economy. Only until 1985 the figure of losses amounted to 35 billion Afghanis. In 1992 an Islamic State was established. From 1996 to 2002 the Taliban was established, the standard of living fell dramatically. More than 3 million Afghans immigrated to Iran.

Currently 30% of the population of Afghanistan suffers from hunger. The country ranks third in the world in terms of infant mortality rates, the unemployment rate can reach 70% or 80%. The salary of civil servants, teachers and professors is 7 thousand Afghans about 100 dollars. For 16 years, not a single factory was built, not a single dam.

Agriculture

Economy

• Value added in agriculture: 28,67 (2015)

Livestock

• Cows and buffaloes: 5,349,000 heads (2014)
• sheep and goats: 20.544,000 heads (2014)
• Birds: 11,098 heads (2014)

Production

• Trigo: 5,370,259 tons (2014)
• Olive oil: 539 tons (2013)
• Sunflower oil: 649 tons (2013)
• Cebada: 521,000 tons (2014)
• Orange: 6,320 tons (2013)
• Apple: 78,597 tons (2013)
• Maize: 316,000 tons (2014)
• Pope: 340,257 tons (2014)

Agricultural land

• Agricultural land: 3.182.922 hectares (2013)

Trade

Trade balance

Balance of payments: $0.92 (2013)
Trade balance: -$7,936,066,715 (2014)

Exports: $535,000,000

Imports: $7,800,000,000 (2014)

Unemployment

• Unemployment rate: 11.2% (2020)

HDI

• 0,511 (2020)

Poverty

• 55% (2020)

Inflation

• 1.35% (May 2021)

GDP

• USD 19,807 million (2020)
  • GDP per capita: USD 509 (2020)
  • GDP growth: -1.9%

INB

• 20,709,215,549$ (2014)
  • GNI per capita: $680$ (2014)

News

The country is very poor, landlocked and highly dependent on foreign aid, agriculture and trade with neighboring countries. Much of the population continues to suffer from a lack of housing, clean water, electricity, medical care, and employment. In addition to widespread unemployment, another problem is the lack of qualified workers and civil servants.

The monetary unit is the afghani, which is divided into 100 puls. From 1981 to 1996, the official exchange rate was set at 51 Afghanis to 1 US dollar. Currently the price of the Afghani fluctuates in the market. By July 2021, the exchange rate was 79.55 afghanis per dollar.