Afghanistan’s Economy On The Verge Of Collapse | Wadsam

Afghanistan’s Economy On The Verge Of Collapse | Wadsam
It’s a known fact that Afghanistan’s heavy reliance on foreign aid made a slowdown in aftermath of the

transition an eventuality. With the fall in grants, not to mention the absence of consumption generated by the foreign presence, the high growth seen in recent years is unsustainable. Afghanistan’s economy vastly supported by international military spending and aid since the 2001. Since the U.S.-led war began, Afghanistan’s economy has been boosted by foreign spending. The World Bank has said about 97 percent of Afghanistan’s gross domestic product is derived from spending linked to foreign forces and the donor community. Let’s take into account some of the figures and report in relations to Afghan economy. The new Business Tendency Survey Report, released by the Afghanistan Chamber of Commerce and Industries (ACCI) in August, points to a clear worsening of the situation: business conditions have deteriorated rapidly, orders are contracting, firms are closing shop, and layoffs are becoming more widespread. The report, based on interviews conducted in July 2014 with managers from 541 Afghan firms, covered the manufacturing, services, trade, and construction sectors across the Kabul, Balkh, Kandahar, Nangarhar, and Herat regions. The survey’s headline finding is that the overall business climate has worsened considerably since March: Almost three-fifths of all firms complained of deteriorating conditions.