World Bank: Afghanistan’s Economy To Surge For Second Consecutive Year

The World Bank has confirmed that Afghanistan’s economy is expanding for the second consecutive year, supported by low inflation and stronger revenues.

Brand News Day Nigeria reports that the World Bank has published its annual report on Afghanistan’s economy and these are key highlights:

Afghanistan’s GDP is projected to grow by 4.3 percent in 2025, following growth of 2.5 percent in 2024.

The agriculture sector remains resilient, achieving a record irrigated wheat harvest despite severe drought conditions, while mining and construction continue to support economic output.

Inflation remains among the lowest in the region, averaging 2 percent in 2025, supported by stable food prices and currency appreciation

The banking sector remains fragile, marked by regulatory uncertainty, rising non-performing loans, and constrained lending activity. Liquidity pressures persist, with much of the recent increase in cash circulating outside the formal banking system.

The transition to Islamic finance and limited access to formal banking remain key barriers to financial inclusion, especially for recent returnees.

Afghanistan is experiencing one of its largest waves of returns in recent history, with an estimated 4 to 4.7 million individuals returning between September 2023 and July 2025.

The socio-economic profile of returnees is highly varied, with some bringing valuable skills and assets, while many remain vulnerable due to lack of education and limited resources. Local labor markets and public services is under strain, especially in border districts and urban centers.

In a similar development,  Afghanistan, through its Ministry of Mines and Petroleum of the Islamic Emirate of Afghanistan announced that it sold 18,000 tons (equivalent to 132,000 barrels) of crude oil from the Amu Darya (Qashqari) field through auction to a refinery company for about 10.5 million dollars.