Poverty Deepening Despite Modest Afghan Economic Growth, Says World Bank

New Delhi ( The Indian View team) :

The World Bank says Afghanistan’s economy has shown limited growth but still faces serious challenges, including inflation, population growth and declining foreign aid.

In its latest monthly report published on Tuesday, the World Bank said Afghanistan’s economy continues to grow modestly despite regional tensions and border closures, with real GDP estimated at around 4.8 percent.

According to the report, the growth has largely been driven by rising domestic demand and the return of millions of Afghan migrants, factors that have increased household consumption and market activity.

However, the World Bank warned that the return of around 3.7 million Afghans has outpaced economic growth, leading to a 5.6 percent decline in per capita GDP.

The institution said population growth and rising prices have placed additional pressure on household livelihoods.The report noted that inflation averaged 3.6 percent during the 2025 fiscal year and rose to 7.6 percent in March 2026.