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Economy of Afghanistan

Afghanistan is considered to be a developing nation. The developmental stage of a nation is determined by a number of factors including, but not limited to, economic prosperity, life expectancy, income equality, and quality of life. As a developing nation, Afghanistan may not be able to offer consistent social services to its citizens. These social services may include things like public education, reliable healthcare, and law enforcement. Citizens of developing nations may have lower life expectancies than citizens of developed nations. Each year, Afghanistan exports around $0.38 billion and imports roughly $6.39 billion. 8.8% of population in the country are unemployed. The total number of unemployed people in Afghanistan is 3,200,839. In Afghanistan, 36% of the population lives below the poverty line. The percentage of citizens living below the poverty line in Afghanistan is fairly high, but is not reason for complete concern with regard to investments. Potential financial backers should look at other economic markers, including GDP, urbanization rate, and strength of currency, before making any decisions regarding investments. Government expenditure on education is 1.9% of GDP. The Gini Index of the country is 29. Afghanistan is experiencing high equality. Differences in income among citizens are only mildly significant. Afghanistan has a Human Development Index (HDI) of 0.468. Afghanistan has a lower medium HDI score. This indicates that the majority of citizens will struggle to attain a desirable life due to flawed economic and social systems. The Global Peace Index (GPI) for Afghanistan is 3.427. The strength of legal rights index for Afghanistan is 9. Overall, it is considered to be rather strong - bancrupcy and collateral laws are able to protect the rights of borrowers and lenders quite well; credit information is abundant and easily accessible.


The currency of Afghanistan is Afghan afghani. The plural form of the word Afghan afghani is afghanis. The symbol used for this currency is ؋, and it is abbreviated as AFN. The Afghan afghani is divided into Pul; there are 100 in one afghani.

Credit rating

Credit rating is the extent to which international investors trust a country in paying debts and upholding the country's obligations in terms of crediting. There is no information on the credit rating of Afghanistan.

Central bank

The prime lending rate of Afghanistan's commercial banks is 15.08. In Afghanistan, the institution that manages the state's currency, money supply, and interest rates is called Central Bank of Afghanistan. Locally, the central bank of Afghanistan is called Da Afghanistan Bank. The average deposit interest rate offered by local banks in Afghanistan is 6%.

Public debt

Afghanistan has a government debt of 7.5% of the country's Gross Domestic Product (GDP), as assessed in 2008.

Tax information

The corporate tax in Afghanistan is set at 20%. Personal income tax ranges from 10% to 20%, depending on your specific situation and income level. VAT in Afghanistan is 5%, and it is known as Business Receipts Tax.


The total Gross Domestic Product (GDP) assessed as Purchasing Power Parity (PPP) in Afghanistan is $36.838 billion. The Gross Domestic Product (GDP) assessed as Purchasing Power Parity (PPP) per capita in Afghanistan was last recorded at $0 million. PPP in Afghanistan is considered to be below average when compared to other countries. Below average PPP indicates that citizens in this country find it difficult to purchase local goods. Local goods can include food, shelter, clothing, health care, personal care, essential furnishings, transportation and communication, laundry, and various types of insurance. Countries with below average PPP are dangerous locations for investments. The total Gross Domestic Product (GDP) in Afghanistan is 22 billion. Based on this statistic, Afghanistan is considered to have a small economy. Countries with small economies generally support less industries and opportunities for investment. However, worthwhile investment opportunities may be found. The Gross Domestic Product (GDP) per capita in Afghanistan was last recorded at $0 million. The average citizen in Afghanistan has very low wealth. Countries with very low wealth per capita often have lower life expectancies and dramatically lower quality of living among citizens. It can be very difficult to find highly skilled workers in countries with very low wealth, as it is difficult for citizens to obtain the requisite education needed for specialized industries. However, labor can be found for very low rates when compared with countries with higher wealth per capita. GDP Annual Growth Rate in Afghanistan averaged 3.2% in 2014. According to this percentage, Afghanistan is currently experiencing modest growth. Countries that are experiencing modest growth offer safe opportunities for investment; their expanding economy indicates that businesses, jobs, and income will expand accordingly. To read more about financial information click on finances of Afghanistan.


Major industries in the country are small-scale production of bricks, textiles, soap, furniture, shoes, fertilizer, apparel, food products, non-alcoholic beverages, mineral water, cement, handwoven carpets, natural gas, coal, copper. The total labor force of Afghanistan is 10,937,090 people, wherein 8.8% of population in the country are unemployed. The total number of unemployed people in Afghanistan is 3,200,839. The Industrial Production growth rate of Afghanistan is 7.7%.To read more about industrial information within Afghanistan click on industry of Afghanistan.


There are 12530 km2 of arable land in Afghanistan, and it comprises 2% of the country's total territory. There are 13066 km2 of cultivated land in Afghanistan. The country's major agricultural crops and products are opium, wheat, fruits, nuts, wool, mutton, sheepskins, lambskins.To read more about agriculture click on agriculture of Afghanistan.