UN Report Shows Afghanistan's Trade Deficit Rose to 9.56 Billion Dollars in 2024
A joint United Nations Development Programme and UN Trade and Development report has documented a significant increase in Afghanistan's trade deficit, which reached 9.56 billion dollars in 2024, up from 6.72 billion dollars in 2023.
The study highlights the Afghan economy's heavy dependence on international aid that continues to decline. This reliance raises concerns about rising poverty, displacement, vulnerability and social instability, with potential implications for regional and global security.
The research was carried out in the provinces of Herat, Nangarhar, Kabul, Kandahar and Balkh. It identifies inadequate infrastructure, a weak banking system and the neglect of small and medium-sized enterprises as key challenges facing the economy.
Small and medium-sized enterprises account for about 80 percent of Afghanistan's economic activities and hold potential for greater women's economic participation. However, they face obstacles including lack of liquidity, limited access to technology and export restrictions.
The report references a World Bank analysis showing a 5.6 percent drop in per capita income due to population growth from returning migrants combined with reduced aid, border closures, drought and earthquakes.
The findings point to the need to tackle these structural issues to mitigate further economic and social pressures.
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