U.S. Institute of Peace

05/02/2024 | Press release | Distributed by Public on 05/02/2024 09:30

Despite Daunting Economic Headwinds, Afghan Private Sector Shows Signs of Life

Three years after the Taliban took control of Afghanistan, the country's economy remains in a dismal state marked by depression-level price deflation, high unemployment and a collapse of GDP. Still, while the bad news for Afghans is well known, less visible are some green shoots in the country's private sector that, if properly encouraged, could mitigate the situation. These range from small business activity to Taliban plans for major projects to the potential for an uptick in investment. Clearly nothing in those developments can stimulate a strong economic revival.