Afghanistan Economic Update, October 2012

Afghanistan is in a state of transition which involves the handover of security responsibilities from international forces to the Afghan government. However, at present, Afghanistan's economy is growing strongly as a result of an exceptionally good harvest this year. Real gross domestic product (GDP) growth will most likely close the calendar year at 10 percent, a significant increase from last year's 5.8 percent. The services and construction sectors continue to grow strongly, driven mostly by continued high military spending and external aid. The good harvest has also brought Afghanistan to near food self-sufficiency and slowed inflation to 4.6 percent in July 2012 (y-o-y). Progress in the mining sector is clouded by uncertainty about a new mineral law. While investor interest in the sector is encouraging, gaps in the legal and regulatory framework of the sector do not provide sufficient confidence to investors to start operations or make firm commitments. A new low is in preparation but has also been heavily debated. Afghanistan's economic growth prospects for 2012 give cause for optimism. Although real GDP growth slowed, to around 7 percent in 2011 (from 8 percent the year before), due mainly to unfavorable weather and a poor harvest, the agriculture sector rebounded strongly in 2012 and is expected to boost economic growth to over 10 percent. Agriculture is an important but volatile component of economic growth.

Bibliographic Details

Main Author:	World Bank
Format:	Report biblioteca
Language:	English en_US
Published:	Washington, DC 2012-10
Subjects:	ACCESS TO MARKETS, ACCOUNTABILITY, ACCOUNTING, AGRICULTURAL OUTPUT, AGRICULTURAL SECTOR, AGRICULTURE, AUDITS, BALANCE OF PAYMENT, BALANCE OF PAYMENTS, BANK DEPOSITS, BANKING SECTOR, BANKRUPTCY, BENCHMARKS, BROAD MONEY, BUDGET DEFICIT, BUDGETING, BUSINESS CONFIDENCE, BUSINESS ENVIRONMENT, CAPACITY BUILDING, CAPITAL INFLOWS, CIVIL SERVICE, COMMERCIAL BANK, COMMERCIAL BANKING, COMMERCIAL LOANS, COMMODITIES, COMMODITY, COMMODITY PRICE, COMPETITIVENESS, CONSOLIDATION, CONSUMPTION EXPENDITURE, CORRUPTION, CREDIT ANALYSIS, CREDITS, CURRENCY, CURRENT ACCOUNT, CURRENT ACCOUNT BALANCE, CURRENT ACCOUNT DEFICIT, DEBT STOCK, DEMAND FOR CREDIT, DEMOCRACY, DEPOSITS, DEVELOPMENT INVESTMENTS, DEVELOPMENT PROJECTS, DISBURSEMENTS, DOMESTIC CREDIT, DONOR FUNDING, ECONOMIC DEVELOPMENTS, ECONOMIC GROWTH, ECONOMIC OUTLOOK, ENTERPRISE DEVELOPMENT, EQUIPMENT, EXCHANGE RATE, EXCHANGE RATE FLUCTUATIONS, EXCHANGE RATES, EXPENDITURE, EXPENDITURES, EXPORT BASE, EXPORT EARNINGS, EXPORT GROWTH, EXPORT MARKET, EXPORTS, EXTERNAL DEBT, FAMILIES, FARMERS, FINANCIAL INTERMEDIATION, FINANCIAL MANAGEMENT, FINANCIAL MARKETS, FINANCING NEEDS, FISCAL REFORMS, FOOD PRICE, FOOD PRICES, FOREIGN CAPITAL, FOREIGN DIRECT INVESTMENT, GDP PER CAPITA, GOVERNMENT FINANCE, GOVERNMENT INVESTMENTS, GOVERNMENT REVENUES, GOVERNMENT SPENDING, GROWTH PROJECTIONS, GROWTH RATES, HOUSEHOLDS, HUMAN DEVELOPMENT, HUMAN RIGHTS, INCOME, INCOME LEVEL, INCOMES, INFLATION, INFORMATION TECHNOLOGY, INSTRUMENT, INTERNAL CONTROLS, INTERNATIONAL BANKS, INTERNATIONAL DEVELOPMENT, INTERNATIONAL RESERVES, INTERNATIONAL TRADE, INVESTMENT CLIMATE, INVESTMENT FINANCING, INVESTMENT PORTFOLIO, INVESTOR CONFIDENCE, INVESTOR INTEREST, LAWS, LEGAL FRAMEWORK, LEVY, LOAN, LOAN PORTFOLIO, M2, MARKET DEVELOPMENT, MICRO FINANCE, MICRO FINANCE SECTOR, MICROFINANCE, MICROFINANCE INSTITUTIONS, MICROFINANCE SECTOR, MONETARY POLICY, MONEY GROWTH, NATURAL RESOURCES, NEW MARKET, NEW MARKETS, NEW PRODUCTS, NPL, OPEN MARKET, OPEN MARKET OPERATIONS, OPERATING EXPENDITURES, OUTSTANDING LOANS, PENSION, PENSION REFORM, PLEDGES, POLICY RESPONSES, POLITICAL ECONOMY, PORTFOLIO, PRICE CHANGES, PRICE INCREASES, PRIVATE INVESTMENT, PRIVATE INVESTORS, PRIVATIZATION, PROFIT MARGIN, PUBLIC FINANCE, PUBLIC FINANCES, PUBLIC SERVICES, REAL GDP, REAL SECTOR, REFORM PROGRAM, REGIONAL INTEGRATION, REGULATORY ENVIRONMENT, REGULATORY FRAMEWORK, REMITTANCE, RESERVE, RESERVES, REVENUE MOBILIZATION, RULE OF LAW, RURAL ACCESS, SAVINGS, SECURITY RISK, SHAREHOLDERS, SUBNATIONAL FINANCE, SUSTAINABLE DEVELOPMENT, TAX, TAX ADMINISTRATION, TAX COLLECTION, TAX COMPLIANCE, TERRORISM, TIMELY PAYMENT, TOTAL DEBT, TRADE BALANCE, TRADE DEFICIT, TRADE FACILITATION, TRANSPORT, TRUST FUND, TRUST FUNDS, UNDERDEVELOPED FINANCIAL SECTOR, URBAN AREAS, URBAN DEVELOPMENT, WAGES, WHOLESALE PRICES, WITHDRAWAL, WTO,
Online Access:	http://documents.worldbank.org/curated/en/608401468197938061/Afghanistan-economic-update https://hdl.handle.net/10986/27070
Tags:	Add Tag No Tags, Be the first to tag this record!