Economic Growth Fails to Boost Living Standards in Afghanistan Amid Rising Poverty

The World Bank and the United Nations Development Programme (UNDP) have expressed concern over the decline in per capita income in Afghanistan. Despite a 4.8% growth in the economy, poverty and the influx of returning migrants have adversely affected people’s livelihoods.

Economic Growth and Decline in Per Capita Income

The World Bank and the United Nations Development Programme (UNDP) have released a report detailing their concerns regarding the decrease in per capita income in Afghanistan. While the country’s economy is projected to grow by 4.8% in 2025, gross per capita income has seen a decline of 5.6%.

This drop reflects widespread poverty and an unprecedented increase in the number of returnees. Economic experts cite various social and economic factors, including the return of 3.7 million Afghans, as additional pressures on the livelihoods and basic needs of the population.

Factors Contributing to the Decline in Per Capita Income

Mohammad Bashir Doodial, an economic expert, explains that net income diminishes when total revenues and profits decrease, or expenses increase. In Afghanistan, these conditions have led to a decline in per capita income. Another economic expert, Azarakhsh Hafizi, notes that with annual population growth rates between 2.3% and 2.9%, economic growth alone cannot ensure improvements in living conditions.

Recent reports indicate that Afghanistan’s gross income has fluctuated in recent years. While gross income has risen from approximately $14.2 billion in 2021 to $20.3 billion in 2025, per capita income continues to decline due to increasing population and living costs.

Concerns Over the Future

Mr. Hafizi stated that if this trend persists, poverty and livelihood challenges will increasingly affect daily life, diminishing purchasing power even further. The UNDP has also warned about the rising economic pressures and basic needs of Afghans, stating that by 2025, seventy-four percent of the population will struggle to meet their basic needs.

Meanwhile, international agencies such as the Food and Agriculture Organization (FAO) have predicted that by September 2026, approximately 13.8 million Afghans will face severe food insecurity.