Afghan economy falters as NATO mission ends
Wednesday, 21 May 2014
Afghanistan's aid-dependent economy is slowing markedly as NATO troops withdraw, the International Monetary Fund (IMF) said Wednesday, warning that violence, political instability and lack of reform threaten future growth.
GDP growth will slide to 3.2 percent in 2014, the IMF projected in its annual forecast for Afghanistan, which has received billions of dollars in funding since the extremist Taliban regime was ousted in 2001.
This is down from 3.6 percent in 2013 and a huge drop from the 14 percent growth recorded in 2012, when bumper harvests gave the economy an unusual boost.
"Over the past two years, economic activity has been affected by political and security uncertainties and the drawdown of international troops," the report said.
"These uncertainties reduced confidence, discouraged private investment and held back economic activity," according to AFP.