Search

World Bank Sees Modest Economic Improvement for Afghanistan Amid Regional Growth

News image
Photo credit- Reuters
08 Oct 2025 - 09:44 The Kabul Tribune

The Kabul Tribune (KT) — The World Bank said Tuesday that Afghanistan’s economy is showing signs of modest improvement as part of a broader recovery across the Middle East, North Africa, Afghanistan, and Pakistan (MENAAP) region, though conflict, displacement, and restrictions on women’s participation remain key challenges.

In its latest report, “Jobs and Women: Untapped Talent, Unrealized Growth,” the World Bank projects overall regional growth to reach 2.8 percent in 2025 and 3.3 percent in 2026. However, the report warns that Afghanistan’s economic potential remains severely constrained by ongoing instability, reduced international aid, and the near-total exclusion of women from the labor market.

The Bank said that countries across the region could significantly boost growth by increasing female labor force participation, which remains among the lowest in the world. In Afghanistan, women’s access to work and education has been largely restricted since the Taliban returned to power in 2021.

“No other region stands to benefit more from removing barriers to women’s inclusion,” said Ousmane Dione, the World Bank’s Vice President for the MENAAP region. “To unlock the full potential of women, we must tackle every obstacle with comprehensive measures.”

The report estimates that increasing women’s participation in the workforce could raise GDP per capita by 20 to 30 percent in some economies, including Afghanistan, if similar reforms were implemented.

While some regional economies—particularly Gulf states and oil importers—are expected to see stronger growth, the report notes that Afghanistan’s outlook remains fragile, dependent on stability, international engagement, and improved access for women and the private sector.