International

Afghanistan faces fiscal shock: UN

A vendor sells dates along a road in Kandahar on November 29, 2021. | Photo Credit: AFP
AFP Kabul 01 December 2021 22:25 IST
Updated: 01 December 2021 22:25 IST

For decades now Afghanistan’s economy has been undermined by war and drought and was propped up by billions in international aid

Afghanistan’s GDP could contract 20% within a year, the UN predicted in a new report on Wednesday, saying that the withdrawal of international aid after the Taliban’s return to power is an “unprecedented fiscal shock.”

For decades now Afghanistan’s economy has been undermined by war and drought.

But it was propped up by billions in international aid — much of which was frozen when U.S.-led international forces withdrew and the Taliban returned to power in August.

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“The sudden dramatic withdrawal of international aid is an unprecedented fiscal shock,” United Nations Development Programme Asia Director Kanni Wignaraja said, as the agency released its Afghanistan Socio-Economic Outlook 2021-2022.

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