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Report predicts 8.2% drop in Afghan economic growth

Report Predicts 8.2% Drop in Afghan Economic Growth

KABUL – A new report by the Al-Beroni research institute predicts an 8.2% drop in Afghanistan’s economic growth this year.
According to a recent report published by the institute about the country’s economic situation, exports have decreased by $143 million dollars in the last three months compared to the previous three months. The report also stated that the country’s inflation rate has increased to 6.4% in the last month.
The report shows that the spread of the coronavirus and the political tension in the country this year have caused the economy to suffer severely.
Unemployment rates are more than 53%.
“In the last four or five years, one and a half million people have become unemployed, and this number is very high,” said Omar Joya, a researcher in the institute.
The report further states that the Afghan government faces a huge budget deficit, which is predicted to reach AFN 40 billion by the end of the year.
Officials at the institute say that due to the spread of the coronavirus, many donors have cut aid to projects and have instead invested in the fight against the pandemic in Afghanistan.
“A number of donors have shifted some of their costs from one project to another, so it was not new aid, but aid that has changed from one place to another,” stated Nazir Kabiri, head of the Al-Beroni research institute.
Meanwhile, officials at Al-Beroni research institute reported problems with the government’s plans to help the people during the lockdown period. They state that the “National Dining Table,” proposed by President Ashraf Ghani but voted-down by the Afghan house of representatives, is not based on modern aid practices and the process will not be transparent.
(Sahar News)

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