World Bank projects 4pc growth for Afghanistan’s economy in 2026
The World Bank projects Afghanistan's economy to grow by 4.0 percent in 2026, driven by stronger domestic demand and higher private investment. The growth is expected to be fueled by the gradual integration of returnees into the labor market, despite risks from regional conflicts and reliance on trade routes through Iran.
The World Bank has projected that Afghanistan's economy will grow by 4.0 percent in 2026. This growth is driven by robust domestic demand, increased private sector investment, and better absorption of returnees into the workforce. Afghanistan's GDP is expected to accelerate to 4.8 percent in 2025 before moderating to 4.0 percent in 2026. The economy faces risks from regional conflicts, reliance on trade routes through Iran, and a large influx of returnees. Ongoing conflicts in the Middle East could slow economic growth and exacerbate inflation. The report warns that a sudden influx of returnees could lead to a decline in per capita income in the short term.
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