Afghanistan's per capita income falls by one-third in last months of 2021: World Bank

The World bank on Wednesday said that urgent action is needed to stabilize Afghanistan's economy as its per capita income has fallen by around one-third in the last months of 2021, wiping out the country's economic progress achieved since 2007.

The World Bank said that Afghanistan's aid-dependent services sector has been hit by the crisis, leading to a collapse in urban employment and incomes, reported Tolo News.

The political crisis has put the gains of around two decades in Afghanistan at risk and will lead the country to grave poverty, the World Bank said.

According to the statement, if the current condition continues, the Gross Domestic Product per capita will decline by around 30 per cent between end-2020 and end-2022.

The World Bank updates indicated that the outlook for Afghanistan's economy is dire under current conditions with international assistance limited to supporting humanitarian needs and basic services.

The incomes will remain stagnant and the economy is expected to contract further throughout 2022, said the statement.

The World Bank update said joint actions are required to move away from this path.

Meanwhile, officials at the Afghan Ministry of Economy said the ministry has economic plans to improve the situation, reported Tolo News.

"To control the situation, the Ministry of Economy has a strategic plan on which trade and transit are focused," said Abdul Latif Nazari, deputy minister of Economy.

Economic experts believe that Afghanistan will experience a great economic tragedy if the condition continues, reported Tolo News.

"The poverty, unemployment and humanitarian crisis will expand if the situation continues, and we will gradually lose the basics of economy in Afghanistan," said Shabeer Basheeri, economic expert.

( With inputs from ANI )

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