Afghanistan Economy Profile 2004

Economy - overview

Afghanistan's economic outlook has improved significantly over the past two years because of the infusion of over $2 billion in international assistance, dramatic improvements in agricultural production, and the end of a four-year drought in most of the country. However, Afghanistan remains extremely poor, landlocked, and highly dependent on foreign aid, farming, and trade with neighboring countries. It will probably take the remainder of the decade and continuing donor aid and attention to raise Afghanistan's living standards up from its current status among the lowest in the world. Much of the population continues to suffer from shortages of housing, clean water, electricity, medical care, and jobs, but the Afghan government and international donors remain committed to improving access to these basic necessities by prioritizing infrastructure development, education, housing development, jobs programs, and economic reform over the next year. Growing political stability and continued international commitment to Afghan reconstruction create an optimistic outlook for maintaining improvements to the Afghan economy in 2004. The replacement of the opium trade - which may account for one-third of GDP - is one of several potential spoilers for the economy over the long term.

GDP (purchasing power parity)

purchasing power parity - $20 billion (2003 est.)

GDP - real growth rate

29% (2003 est.)
note: this high growth rate reflects the extremely low levels of activity between 1999 and 2002, as well as the end of a four-year drought and the impact of donor assistance

GDP - per capita (PPP)

purchasing power parity - $700 (2003 est.)

GDP - composition by sector

agriculture: 60%
industry: 20%
services: 20% (1990 est.)

Population below poverty line

23% (2002)

Household income or consumption by percentage share

lowest 10%: NA
highest 10%: NA

Inflation rate (consumer prices)

5.2% (2003)

Labor force

11.8 million (2001 est.)

Labor force - by occupation

agriculture 80%, industry 10%, services 10% (1990 est.)

Unemployment rate

NA (2003)

Budget

revenues: $200 million
expenditures: $550 million, including capital expenditures of NA (2003 plan)

Industries

small-scale production of textiles, soap, furniture, shoes, fertilizer, cement; handwoven carpets; natural gas, coal, copper

Industrial production growth rate

NA

Electricity - production

334.8 million kWh (2001)

Electricity - consumption

511.4 million kWh (2001)

Electricity - exports

0 kWh (2001)

Electricity - imports

200 million kWh (2001)

Oil - production

0 bbl/day (2001 est.)

Oil - consumption

3,500 bbl/day (2001 est.)

Oil - imports

NA (2001)

Oil - exports

NA (2001)

Oil - proved reserves

0 bbl (1 January 2002)

Natural gas - production

220 million cu m (2001 est.)

Natural gas - consumption

220 million cu m (2001 est.)

Natural gas - exports

0 cu m (2001 est.)

Natural gas - imports

0 cu m (2001 est.)

Natural gas - proved reserves

49.98 billion cu m (1 January 2002)

Agriculture - products

opium, wheat, fruits, nuts, wool, mutton, sheepskins, lambskins

Exports

$98 million (not including illicit exports) (2002 est.)

Exports - commodities

opium, fruits and nuts, handwoven carpets, wool, cotton, hides and pelts, precious and semi-precious gems

Exports - partners

US 27%, France 17.5%, India 16.6%, Pakistan 13.3% (2003)

Imports

$1.007 billion (2002 est.)

Imports - commodities

capital goods, food, textiles, petroleum products

Imports - partners

Pakistan 30.1%, South Korea 9.2%, Japan 7.6%, Germany 6.9%, Turkmenistan 5.4%, Kenya 4.6%, US 4.5%, Russia 4% (2003)

Debt - external

$8 billion in bilateral debt, mostly to Russia; Afghanistan has $500 million in debt to Multilateral Development Banks (2004)

Economic aid - recipient

international pledges made by more than 60 countries and international financial institutions at the Tokyo Donors Conference for Afghan reconstruction in January 2002 reached $4.5 billion through 2006, with $1.8 billion allocated for 2002; another $1.7 billion was pledged for 2003.

Currency

afghani (AFA)

Currency (code)

AFA

Exchange rates

afghanis per US dollar - 50 (2003), 50 (2002), 3,000 (2001), 3,000 (2000), 3,000 (1999)
note: in 2002, the afghani was revalued and the currency stabilized at about 50 afghanis to the dollar; before 2002, the market rate varied widely from the official rate

Fiscal year

21 March - 20 March