Afghanistan’s economy was struggling for years before the Taliban recaptured the country.
The country’s gross domestic product (GDP) was lower in 2020 than in 2013. It had grown multifold between 2001 and 2013. But most of this was driven by foreign aid. The World Bank pegged foreign aid in 2009 at 100 per cent of GDP. It fell to 42.9 per cent in 2020. Growth also declined relative to the rest of the world once flows tapered (chart 1).
Security concerns affected investments. Business Standard looked at foreign direct investment in Afghanistan relative to other low-income peers.
The country’s gross domestic product (GDP) was lower in 2020 than in 2013. It had grown multifold between 2001 and 2013. But most of this was driven by foreign aid. The World Bank pegged foreign aid in 2009 at 100 per cent of GDP. It fell to 42.9 per cent in 2020. Growth also declined relative to the rest of the world once flows tapered (chart 1).
Security concerns affected investments. Business Standard looked at foreign direct investment in Afghanistan relative to other low-income peers.