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Afghanistan’s economy is on the verge of collapse, 85% of the population lives in poverty: UN

Afghanistan, with a population of about 40 million people and a GDP of $14.3 billion in 2021, is among the countries with the lowest per capita income in the world, and about 85% of the population, according to UN estimates, lives below the poverty line.

   
April 20, 2023, 00:49
World
Image: Meer Abdullah Rasikh / Afghan Red Crescent Society

Image: Meer Abdullah Rasikh / Afghan Red Crescent Society

KABUL (Realist English). Almost 34 million Afghans live in poverty, and the country’s economy is on the verge of collapse. This is stated in the report “Afghanistan socio-economic outlook-2023”, published by the UN Development Programme, provides an overview of the consequences of the seizure of power in Afghanistan by the Taliban in August 2021.

According to the UN report, the number of Afghans living in poverty has increased by 15 million people — from 19 million in 2020 to 34 million in 2023. The report notes that most of the blame was due to the fact that the Taliban seized power in the summer of 2021. Therefore, in 2021, many aid programs were cut when countries refused to deal with the Taliban. This led to an economic crisis.

“Our analysis shows that exports have grown and imports have stabilized. At the same time, the stability of the exchange rate and inflation remained. The money comes from money transfers and illegal drug exports. These are transfers from relatives who want to help those who remain here in Afghanistan, support from the diaspora. For the most part, these are transfers from Afghans who work in Pakistan, India and the United Arab Emirates,” said Surayo Buzurukova, Deputy Permanent Representative of UNDP in Afghanistan.

The UN’s appeal for international aid in the amount of $4.6 billion in 2023 is the minimum needed to help Afghans in need. The report says that any reduction in international aid will worsen Afghanistan’s economic situation and lead to extreme poverty that will persist for decades.

AfghanistanAfghanistan’s Domestic PolicyAsiaUnited Nations
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