Afghanistan Economic Update, October 2013
Uncertainty surrounding the political and security transition in Afghanistan has led to a slowdown in economic growth in 2013, following strong growth in 2012. After a decade of strong fiscal performance, revenue collection has weakened in 2013, po...
| Main Authors: | , |
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| Format: | Economic Updates and Modeling |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2014
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2013/10/18433329/afghanistan-economic-update-poverty-reduction-economic-management http://hdl.handle.net/10986/16656 |
| Summary: | Uncertainty surrounding the political
and security transition in Afghanistan has led to a slowdown
in economic growth in 2013, following strong growth in 2012.
After a decade of strong fiscal performance, revenue
collection has weakened in 2013, potentially delaying
Afghanistan's path toward self-reliance. In order to
preserve fiscal sustainability, a concerted effort will be
required going forward to improve revenue mobilization by
strengthening tax and customs administration and by
expediting introduction and implementation of the planned
value-added tax. Afghanistan faces considerable expenditure
needs in the areas of security, infrastructure development,
service delivery, and operations and maintenance. Meeting
these needs will also require significant grant assistance
for the foreseeable future. In spite of the
transition-related uncertainty and underperformance,
Afghanistan will need to stay focused on its medium term
structural reform goals. These include: (i) safeguarding
sustainability by mobilizing revenue and securing grant
assistance; (ii) supporting inclusive and job-creating
post-transition growth by unlocking the potential of the
agriculture and natural resource sectors and by tapping the
potential of regional integration; (iii) improving upon the
low levels of human capital and skills; and (iv) continuing
to strengthen institutions and governance. This report is
organized as follows: section one gives recent economic
developments; section two presents economic outlook and
medium term prospects; and section three presents structural
policies for the medium term. |
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