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After the Americans, the Afghan economy is in danger of collapse

After the Americans leave Afghanistan quickly and the Taliban took power, the Afghan economy is in danger of collapsing.

After the Americans, the Afghan economy is in danger of collapse
Yazar: Tom Roberts

Yayınlanma: 2 Eylül 2021 23:29

Güncellenme: 20 Kasım 2024 07:32

After the Americans, the Afghan economy is in danger of collapse

After the Americans leave Afghanistan quickly and the Taliban took power, the Afghan economy is in danger of collapsing. This was stated in the latest report by Fitch Solutions, an analytical and research group of the rating agency Fitch. The group expects Afghanistan's real gross domestic product (GDP) to fall by 9.7 percent in the current financial year, while it originally expected growth of 0.4 percent this year. The economy should continue to decline next year, with Fitch predicting that the decline will reach 5.2 percent. According to analysts, the chaotic way in which the US security forces leave the country and the rise of the Taliban will cause significant economic problems to emerge in the near future. In the longer term, the Fitch Solutions analytical group expects modest economic growth. He expects the economy to grow by an average of 1.2 percent between 2023 and 2030. In comparison, the average growth rate for the years 2002-2020 reached 6 percent. For better-than-expected development, foreign investment will be needed, Fitch said. "A more positive economic scenario in Afghanistan envisages an average growth rate of 2.2 percent between 2023 and 2030. In this case, however, we anticipate that some large economies, notably China and possibly Russia, will accept the Taliban as the legitimate government of Afghanistan and they will start implementing large investment projects in the country, "added Fitch Solutions.
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