Afghanistan Development Update - The Private Sector in Afghanistan : Resilient but Constrained

Overview & Synopsis

Afghanistan’s economy is expanding modestly, but this growth is not improving people’s lives. Economic activity has picked up, supported by relative price stability and improved domestic revenue collection. However, rapid population growth—driven by the return of millions of Afghans — means that incomes per person are declining. At the same time, weak investment and limited job creation continue to constrain opportunities. While macroeconomic stability has largely been preserved, rising external pressures, regional conflicts, and declining aid are increasing vulnerability, and the outlook remains fragile.