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WB projects 2.9pc Afghanistan growth rate in 2017

WB projects 2.9pc Afghanistan growth rate in 2017

Apr 11, 2016 - 21:38

WASHINGTON (Pajhwok): The Worldinfo-icon Bank on Monday posted a grim picture of Afghanistaninfo-icon’s economy, forecasting a 2.9 percent growth rate for the country in 2017 and 1.9 percent in the current fiscal.

 “Persisting uncertainty around the security and political environmentinfo-icon has hindered business activities and overall domestic demand,” the bank said in its the twice-a-year South Asia Economic Focus, report released here on Monday.

Led by robust growth in India, the bank said South Asia showed resilience in the face of turbulent international markets and remained the fastest-growing region in the world, with economic growth forecast gradually accelerating from 7.1 percent in 2016 to 7.3 percent in 2017.

However, Afghanistan has the lowest growth rate. “Growth is expected to only marginally increase from 1.9 percent in 2016 to 2.9 percent in 2017,” the report said, adding fiscal vulnerabilities remained high and would require a large revenue effort and sustained levels of aid

Future prospects hinged critically on improvements in security tapping into new sources of economic growth and creating an enabling environment for the private sector to invest, the Bank said.

The report said the region’s economic performance prospects remained strong due limited exposure to global turbulence, coupled with increasing investment activity.

However, there are also signs of fading tailwinds. Capital flows to the region have declined and remittances from oil exporting countries have started to weaken.

Fuel and food prices remain low but are unlikely to keep falling. As a result overall output growth is slower than previously anticipated and inflation has recently been creeping up, it said.


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