World Bank Reports 5.6 Percent Decline in Afghanistan's GDP Per Capita
A World Bank report states that Afghanistan's GDP per capita has decreased by 5.6 percent, as population growth has outpaced economic growth and inflation has risen.
The report identifies conflicts in Iran and the Middle East as an economic shock affecting the region, including Afghanistan. Regional growth, excluding Iran, is projected to slow from 4 percent in 2025 to 1.8 percent in 2026, which is 2.4 percentage points lower than January forecasts.
Osman Diune, World Bank vice president, emphasized the need to build resilience against crises through strengthened governance, macroeconomic stability, job creation and peace as a precondition for development.
The report notes that the war between the United States, Israel and Iran has led to dramatic increases in prices of goods imported to Afghanistan via Iran, reducing citizens' purchasing power. Economic experts attribute the decline in per capita GDP to these price hikes alongside reduced income and employment opportunities.
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