According to Trading Economics global macro models and analysts, Afghanistan’s GDP is predicted to reach $20.46 billion by the end of 2021. According to our econometric models, Afghanistan’s GDP is expected to trend at 21.43 billion dollars in 2022.
Is Afghanistan a poor or wealthy nation?
Afghanistan is one of the poorest nations on the planet. Poverty is widespread in Afghanistan’s rural and urban areas. Poverty in Afghanistan, on the other hand, is said to be concentrated primarily in rural areas. Rural areas are home to four out of every five poor people, according to estimates. Many newborns and toddlers are stunted, emaciated, and die each year in these rural areas because of a lack of proper nutrition. The East, Northeast, and West-Central regions of Afghanistan have about half of the population living in poverty. According to the Afghan government, 42 percent of the Afghan population lives in poverty. In addition, 20% of persons living just above the poverty line are at risk of sliding into poverty.
What is the foundation of Afghanistan’s economy?
Afghanistan is one of the poorest countries in the planet. Years of conflict and political unrest have left the country in shambles and reliant on outside assistance. Agriculture is the country’s main source of revenue, and during good years, Afghanistan produces enough food and food products to feed its people while also creating a surplus for export. Corn, rice, barley, wheat, vegetables, fruits, and nuts are the main food crops grown. Agriculture and pastoral raw materials are also used in Afghanistan’s industry. Cotton, tobacco, madder, castor beans, and sugar beets are the most important industrial crops. Sheep farming is also quite profitable. Wool and highly valuable Karakul skins are the most important sheep products exported. Afghanistan is a country with abundant natural resources. Mineral and precious stone deposits, as well as natural gas and undeveloped petroleum reserves, abound. Some of these resources have been fully utilized, while others have remained mostly untapped.
- Pakistan, South Korea, Japan, Germany, Turkmenistan, Kenya, the United States, and Russia are all import partners.
Why is Afghanistan so impoverished?
People frequently associate Afghanistan with the Taliban, who have provided safe haven to terrorists such as Osama bin Laden. They do not, however, consider how a country becomes engulfed in such fanaticism. When poverty is widespread, terrorism and instability are more likely to emerge. Starting with the Soviet invasion of Afghanistan in 1979, poverty has been a severe issue in Afghanistan for nearly three decades.
Poverty alleviation can be difficult due to this unpredictability. According to the World Bank’s 2017 Poverty Status Update Report on Afghanistan’s socioeconomic progress, the country’s 15 years of prosperity are now challenged by an increase in insecurity. Shubham Chaudhuri, the World Bank’s Country Director for Afghanistan, notes that with poverty rising from 36 to 39 percent of the Afghan population, further measures are needed to ensure that economic progress reaches Afghan people. Here are some facts about poverty in Afghanistan to help you learn more about the Afghan people’s living situations.
Top 10 Facts About Poverty in Afghanistan
- Poverty in Afghanistan is caused by two things, according to Aryana Aid: “food insecurity and a lack of a social safety net.” As a result, 50% of Afghan children are stunted, while 20% of Afghan women of childbearing age are underweight.
- Food is dispersed inequitably around the country, with the majority of it going to places where there is significant fighting. This puts further demand on individuals in other places and adds to the chronic food insecurity.
- In addition, half of the population in both rural and urban areas lacks access to safe drinking water.
- The government’s approach to addressing food insecurity has focused on ensuring appropriate calorie intake, but this has left individuals vulnerable to food price shocks, causing them to reduce the quality of their diet in order to buy food.
- The conflict in Afghanistan is one of the main causes of poverty; in the worst-affected districts, 55 to 75 percent of the Afghan population lives in poverty, while other regions have lower poverty rates.
- According to the Center for Strategic and Regional Studies, Afghanistan’s poverty rate has remained stable since the conflict began in 2001, despite increased foreign help.
- Only 28% of Afghanistan’s population of 15 years and older is literate.
- Afghanistan has the highest infant mortality rate in the world due to a lack of water and other basic necessities.
- Around 70,792 Afghan families have sought sanctuary in filthy makeshift settlements; 25% of those families have lived there for more than ten years.
- Unemployment is a major barrier to relocating these and other internally displaced persons, since they are hesitant to return to rural areas where jobs are scarce.
Aryana Aid has been sending food packages to the people of Afghanistan since 2009 to assist alleviate these problems. The World Food Programme received $25 million from USAID’s Office of Food For Peace in early 2018, and an estimated 547,000 malnourished Afghans received emergency supplies from local and regional marketplaces.
Afghanistan’s economy is expected to increase by 2.6 percent in 2017, compared to 2.2 percent in 2016. The upward trend is expected to continue in 2018, with a 3.2 percent increase, which will aid in the alleviation of the several issues outlined in the top ten facts concerning poverty in Afghanistan.
What is Afghanistan’s most valuable export?
Overview According to the Economic Complexity Index, Afghanistan was the world’s number 111 economy in terms of GDP (current US$), number 140 in total exports, number 113 in total imports, number 188 in terms of GDP per capita (current US$), and the number 109 most complicated economy in 2020. (ECI).
Exports Gold ($542 million), grapes ($181 million), other nuts ($141 million), tropical fruits ($135 million), and raw cotton ($114 million) are Afghanistan’s top exports, with most of it going to the United Arab Emirates ($572 million), India ($499 million), Pakistan ($492 million), China ($54.3 million), and Saudi Arabia ($27.4 million).
Wheat Flours ($554 million), Rolled Tobacco ($473 million), Raw Sugar ($200 million), Refined Petroleum ($195 million), and Electricity ($193 million) are Afghanistan’s top imports, with most of them coming from the United Arab Emirates ($1.66 billion), Pakistan ($870 million), India ($855 million), Kazakhstan ($622 million), and the United States ($603 million).
Location On the land, Afghanistan shares boundaries with China, Iran, Pakistan, Tajikistan, Turkmenistan, and Uzbekistan.
What is India’s current GDP?
- As of 2017, India’s nominal (current) Gross Domestic Product (GDP) is $2,650,725,335,364 (USD).
- In 2017, India’s real GDP (constant, inflation-adjusted) was $2,660,371,703,953.
- In 2017, the GDP Growth Rate was 6.68 percent, a change of 177,938,082,996 US dollars from 2016, when Real GDP was $2,482,433,620,957.
- In 2017, India’s GDP per capita (with a population of 1,338,676,785 people) was $1,987, up $113 from 2016’s $1,874; this indicates a 6.0 percent increase in GDP per capita.
Which country is the most powerful in the world?
In the 2021 Best Countries Report, Canada wins the top overall rank as the world’s number one country for the first time. After coming in second place in the 2020 report, Canada has now eclipsed Switzerland in the 2021 report, with Japan, Germany, Switzerland, and Australia following closely behind.
What is India’s GDP forecast for 2021?
In its second advance estimates of national accounts released on Monday, the National Statistical Office (NSO) forecasted the country’s growth for 2021-22 at 8.9%, slightly lower than the 9.2% estimated in its first advance estimates released in January.
Furthermore, the National Statistics Office (NSO) reduced its estimates of GDP contraction for the coronavirus pandemic-affected last fiscal year (2020-21) to 6.6 percent. The previous projection was for a 7.3% decrease.
In April-June 2020, the Indian economy contracted 23.8 percent, and in July-September 2020, it contracted 6.6 percent.
“While an adverse base was expected to flatten growth in Q3 FY2022, the NSO’s initial estimates are far below our expectations (6.2 percent for GDP), with a marginal increase in manufacturing and a contraction in construction that is surprising given the heavy rains in the southern states,” said Aditi Nayar, Chief Economist at ICRA.
“GDP at constant (2011-12) prices is estimated at Rs 38.22 trillion in Q3 of 2021-22, up from Rs 36.26 trillion in Q3 of 2020-21, indicating an increase of 5.4 percent,” according to an official release.
According to the announcement, real GDP (GDP) or Gross Domestic Product (GDP) at constant (2011-12) prices is expected to reach Rs 147.72 trillion in 2021-22, up from Rs 135.58 trillion in the first updated estimate announced on January 31, 2022.
GDP growth is expected to be 8.9% in 2021-22, compared to a decline of 6.6 percent in 2020-21.
In terms of value, GDP in October-December 2021-22 was Rs 38,22,159 crore, up from Rs 36,22,220 crore in the same period of 2020-21.
According to NSO data, the manufacturing sector’s Gross Value Added (GVA) growth remained nearly steady at 0.2 percent in the third quarter of 2021-22, compared to 8.4 percent a year ago.
GVA growth in the farm sector was weak in the third quarter, at 2.6 percent, compared to 4.1 percent a year before.
GVA in the construction sector decreased by 2.8%, compared to 6.6% rise a year ago.
The electricity, gas, water supply, and other utility services segment grew by 3.7 percent in the third quarter of current fiscal year, compared to 1.5 percent growth the previous year.
Similarly, trade, hotel, transportation, communication, and broadcasting services expanded by 6.1 percent, compared to a decline of 10.1 percent a year ago.
In Q3 FY22, financial, real estate, and professional services growth was 4.6 percent, compared to 10.3 percent in Q3 FY21.
During the quarter under examination, public administration, defense, and other services expanded by 16.8%, compared to a decrease of 2.9 percent a year earlier.
Meanwhile, China’s economy grew by 4% between October and December of 2021.
“India’s GDP growth for Q3FY22 was a touch lower than our forecast of 5.7 percent, as the manufacturing sector grew slowly and the construction industry experienced unanticipated de-growth.” We have, however, decisively emerged from the pandemic recession, with all sectors of the economy showing signs of recovery.
“Going ahead, unlock trade will help growth in Q4FY22, as most governments have eliminated pandemic-related limitations, but weak rural demand and geopolitical shock from the Russia-Ukraine conflict may impair global growth and supply chains.” The impending pass-through of higher oil and gas costs could affect domestic demand mood, according to Elara Capital economist Garima Kapoor.
“Strong growth in the services sector and a pick-up in private final consumption expenditure drove India’s real GDP growth to 5.4 percent in Q3.” While agriculture’s growth slowed in Q3, the construction sector’s growth became negative.
“On the plus side, actual expenditure levels in both the private and public sectors are greater than they were before the pandemic.
“Given the encouraging trends in government revenues and spending until January 2022, as well as the upward revision in the nominal GDP growth rate for FY22, the fiscal deficit to GDP ratio for FY22 may come out better than what the (federal) budget projected,” said Rupa Rege Nitsure, group chief economist, L&T Financial Holdings.
“The growth number is pretty disappointing,” Sujan Hajra, chief economist of Mumbai-based Anand Rathi Securities, said, citing weaker rural consumer demand and investments as reasons.
After crude prices soared beyond $100 a barrel, India, which imports virtually all of its oil, might face a wider trade imbalance, a weaker rupee, and greater inflation, with a knock to GDP considered as the main concern.
“We believe the fiscal and monetary policy accommodation will remain, given the geopolitical volatility and crude oil prices,” Hajra added.
According to Nomura, a 10% increase in oil prices would shave 0.2 percentage points off India’s GDP growth while adding 0.3 to 0.4 percentage points to retail inflation.
Widening sanctions against Russia are likely to have a ripple impact on India, according to Sakshi Gupta, senior economist at HDFC Bank.
“We see a 20-30 basis point downside risk to our base predictions,” she said. For the time being, HDFC expects the GDP to rise 8.2% in the coming fiscal year.
What accounts for Afghanistan’s poor GDP?
Despite international aid, 39 percent of Afghans are poor, and this number is rising. In Afghanistan, 1.3 million more people are poor today than in 2012. Why is Afghanistan so impoverished? Since the Soviet Union invaded in 1979, the country has been torn apart. Insecurity is often exacerbated by internal political upheavals. The majority of Afghan households are unprepared to deal with economic shocks or natural disasters. Around 20% of Afghans live on the edge of poverty, and even minor economic shocks could push them into poverty.
The economy is too tiny for the rising work force, according to one solution to the question “why is Afghanistan poor?” Many people are illiterate and seeking low-wage employment, yet there aren’t enough of them available. Afghanistan’s GDP increased by 1.2 percent in 2016. While this is an improvement, it is insufficient to lift workers out of poverty. According to economists, GDP growth of 8% is required to successfully employ the Afghan workforce. Unfortunately, the country’s ongoing violence and insecurity make this expansion unlikely.
Because of its reliance on agriculture and informal labor markets, rural Afghanistan is impoverished. Low investment and natural calamities have harmed the agriculture sector, which employs the majority of Afghans. Afghanistan lacks the natural resources required for effective agriculture. Farmable land is scarce in comparison to the population. Precipitation is limited, and irrigation infrastructure is inadequate. Furthermore, since 1999, the country has been hit by a series of devastating droughts.
Small-scale farmers and herders, landless individuals, and women who are household heads suffer the brunt of poverty in rural areas. In Afghanistan, women experience greater inequities due to a lack of access to education and health care. Women may be unable to work due to a lack of skills or a medical condition. In Afghanistan, widows make up a major portion of the destitute. Afghanistan may have over one million widows as a result of internal warfare. The majority of these women are mothers with children to support. Because patriarchal society excludes them from numerous social and employment options, the majority of them end up as beggars.
Aid has flowed in from a variety of countries and organizations. However, it does not appear to be of any assistance. Inequality between the rich and the poor is growing throughout the country. A large portion of the help was used to construct schools and hospitals, improve public services, and repair infrastructure. Despite the importance of these human services, the agriculture industry continues to struggle, and rural people are not protected from economic shocks. Furthermore, the government did not always disperse funding evenly across the country.
Why is Afghanistan so impoverished? Afghanistan is poor as a result of the country’s ongoing shocks, and interventions to protect people against economic volatility are needed.
What is Afghanistan’s claim to fame?
Afghanistan’s diverse landscape allows for a wide range of crops. Afghan cuisine is based on wheat, maize, barley, and rice, which are the country’s primary crops. Afghans, unlike their Pakistani neighbors, do not like spicy food. The most essential aspect of the Afghan diet is fresh and dried fruits. Afghanistan is famous for its delicious fruits, particularly pomegranates, grapes, and extra-sweet jumbo-size melons.