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Afghanistan Economy 2008

Economy - overview: Afghanistan's economy is recovering from decades of conflict. The economy has improved significantly since the fall of the Taliban regime in 2001 largely because of the infusion of international assistance, the recovery of the agricultural sector, and service sector growth. Real GDP growth exceeded 7% in 2007. Despite the progress of the past few years, Afghanistan is extremely poor, landlocked, and highly dependent on foreign aid, agriculture, and trade with neighboring countries. Much of the population continues to suffer from shortages of housing, clean water, electricity, medical care, and jobs. Criminality, insecurity, and the Afghan Government's inability to extend rule of law to all parts of the country pose challenges to future economic growth. It will probably take the remainder of the decade and continuing donor aid and attention to significantly raise Afghanistan's living standards from its current level, among the lowest in the world. International pledges made by more than 60 countries and international financial institutions at the Berlin Donors Conference for Afghan reconstruction in March 2004 reached $8.9 billion for 2004-09. While the international community remains committed to Afghanistan's development, pledging over $24 billion at three donors' conferences since 2002, Kabul will need to overcome a number of challenges. Expanding poppy cultivation and a growing opium trade generate roughly $4 billion in illicit economic activity and looms as one of Kabul's most serious policy concerns. Other long-term challenges include: budget sustainability, job creation, corruption, government capacity, and rebuilding war torn infrastructure.
GDP (purchasing power parity): $35 billion (2007 est.)
GDP (official exchange rate): $8.842 billion (2007 est.)
GDP - real growth rate: 11.5% (2007 est.)
GDP - per capita (PPP): $1,000 (2007 est.)
GDP - composition by sector: agriculture: 38% industry: 24% services: 38% note: data exclude opium production (2005 est.)
Labor force: 15 million (2004 est.)
Labor force - by occupation: agriculture: 80% industry: 10% services: 10% (2004 est.)
Unemployment rate: 40% (2005 est.)
Household income or consumption by percentage share: lowest 10%: NA% highest 10%: NA%
Budget: revenues: $715 million expenditures: $2.6 billion note: Afghanistan has also received $273 million from the Reconstruction Trust Fund and $63 million from the Law and Order Trust Fund (2007 est.)
Inflation rate (consumer prices): 13% (2007 est.)
Central bank discount rate: NA
Commercial bank prime lending rate: 18.14% (31 December 2007)
Stock of money: $1.426 billion (31 December 2007)
Stock of quasi money: $958.6 million (31 December 2007)
Stock of domestic credit: $20.06 million (31 December 2007)
Agriculture - products: opium, wheat, fruits, nuts; wool, mutton, sheepskins, lambskins
Industries: small-scale production of textiles, soap, furniture, shoes, fertilizer, cement; handwoven carpets; natural gas, coal, copper
Industrial production growth rate: NA%
Electricity - production: 839 million kWh (2007 est.)
Electricity - consumption: 1.088 billion kWh (2006 est.)
Electricity - exports: 0 kWh (2007 est.)
Electricity - imports: 230 million kWh (2007 est.)
Oil - production: 0 bbl/day (2007 est.)
Oil - consumption: 5,036 bbl/day (2006 est.)
Oil - exports: 0 bbl/day (2005)
Oil - imports: 4,534 bbl/day (2005)
Oil - proved reserves: 0 bbl (1 January 2006 est.)
Natural gas - production: 20 million cu m (2006 est.)
Natural gas - consumption: 20 million cu m (2006 est.)
Natural gas - exports: 0 cu m (2007 est.)
Natural gas - imports: 0 cu m (2007 est.)
Natural gas - proved reserves: 49.55 billion cu m (1 January 2008 est.)
Current account balance: NA
Exports: $274 million; note - not including illicit exports or reexports (2006)
Exports - commodities: opium, fruits and nuts, handwoven carpets, wool, cotton, hides and pelts, precious and semi-precious gems
Exports - partners: India 22.8%, Pakistan 21.8%, US 20.5%, Tajikistan 7.2% (2007)
Imports: $3.823 billion (2006)
Imports - commodities: capital goods, food, textiles, petroleum products
Imports - partners: Pakistan 36.8%, US 11%, India 5%, Germany 4.2% (2007)
Debt - external: $8 billion in bilateral debt, mostly to Russia; Afghanistan has $500 million in debt to Multilateral Development Banks (2004)
Market value of publicly traded shares: $NA
Currency (code): afghani (AFA)
Exchange rates: afghanis (AFA) per US dollar - NA (2007), 46 (2006), 47.7 (2005), 48 (2004), 49 (2003)

NOTE: The economy information regarding Afghanistan on this page is re-published from the 2008 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Afghanistan Economy 2008 information contained here. All suggestions for corrections of any errors about Afghanistan Economy 2008 should be addressed to the CIA.