April 24, 2014

ADB predicts reduction in Afghanistan economic growth

By Khaama Press - Fri Nov 02 2012, 3:28 pm

The Asian Development Bank following a report said that the economic growth in Afghanistan during 2012 and 2013 will be 6.9 and 6.5 percent.

Officials in Asian Development Bank (ADB) also expressed concerns regarding a slight reduction in economic growth during 2013 and emphasized to boost the agriculture in Afghanistan in a bid to improve the economic growth of the country.

According to the economic growth perspective of the ADB, Afghanistan’s economic growth for next year has been predicted at 6.5 percent.

This comes as economic growht in 2011 was 5.8% while in 2012 the economic growth was recorded at 6.9%.

Joji Tokeshi Director of the Asian Development Bank for Afghanistan said, “This is a technical report which has been prepared considering the economic growth assessment in the region and Afghanistan and we are preparing such reports two times a year. A slight reduction in economic growth for 2013 in Afghanistan does not mean that the country is going towards an economic crisis.”

ADB officials said economic growth reduction in Afghanistan has direct links with the foreign aid reduction.

Mr. Tokeshi said they have spent around $2.8 billion since 2002 in Afghanistan to rehabilitate the inftrastructure including water and energy, railway lines and Airports.

He said the aid by the Asian Development Bank had positive impact in Afghanistan and vowed to continue ADB’s cooperation in Afghanistan until 2015.

“We will provide $326 million in 2012, $255 million in 2013 and $255 million will be provided in 2014 to fund the projects in Afghanistan. The funds will be paid by ADB and are non-refundable.”, ADB director Joji Tokeshi said.

This comes as the Interntional Community in Tokyo conference in July vowed to provide $16.5 billion funds to Afghanistan for the next four years subject to Afghan government’s commitment to fight graft.

In the meantime economic observers urge the Afghan government to take necessary steps for the better implementation of foreign aid in a bid to help Afghanistan become self-sufficient.

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  1. The economic development or economic growth in Afghanistan very much depend  on educated and skilled work force in the country which is lacking now and hopefully it will changed and get better in future . Afghanistan is now a country living on donation with no plan for future economic and industrial development programs . Every body is bogged down with war against insurgency and all the energy and resources are concentrated on war machine and military expenditure .
    The size of the army for Afghanistan is far too big and the annual budget for army is back breaking for the country it must change and the burden on tax payers and donor countries must be reduced substantially in order to maintain stability for future otherwise this short sighted policy will collapse .  

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