IMF Says Afghanistan’s Economy Could Shrink By 30%

CNBC: Afghanistan’s economy could shrink by 30% following Taliban takeover, IMF says 

* Afghanistan’s gross domestic product could see a contraction of up to 30% following the Taliban takeover, the IMF said in its latest regional economic report. 

* “These shocks could cause a 20–30 percent output contraction, with falling imports, a depreciating Afghani, and accelerating inflation,” the report said. 

* Jihad Azour, director of the IMF’s Middle East and Central Asia department, said the country was deteriorating because of Covid and droughts, even before the Taliban seized power. 

Afghanistan’s gross domestic product could see a contraction of up to 30% following the Taliban takeover, the IMF said in its latest regional economic report. 

Jihad Azour, director of the IMF’s Middle East and Central Asia department, said the country’s situation was deteriorating, even before Kabul fell. 

“They were facing more than one shock — drought, Covid,” he told CNBC’s Hadley Gamble. 

“Therefore, what we foresee and fear is a sharp contraction.” 

The report also noted that non-humanitarian aid has been halted, foreign assets mostly frozen and Afghan banks have been crippled by cash shortages after the Taliban returned to power. 

“These shocks could cause a 20–30 percent output contraction, with falling imports, a depreciating Afghani, and accelerating inflation,” the report said. “The resulting drop in living standards threatens to push millions into poverty and could lead to a humanitarian crisis.” 

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WNU Editor: It is going to contract even more. Half of Afghanistan's economy is dependent on foreign aid, and that money is gone. 

Not surprising. 

Everyone is now expecting this .... Afghanistan's economic collapse could prompt refugee crisis - IMF (Reuters). 

Three million Afghans have fled this year. I would not be surprised that when winter is over, this number will be double next year.