World Bank records 4.8 per cent growth in Afghanistan while GDP per capita falls 5.6 per cent

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World Bank records 4.8 per cent growth in Afghanistan while GDP per capita falls 5.6 per cent

8 October 2026

The World Bank's Afghanistan Development Update (Spring 2026) was released on 26 May 2026, with a special focus on private sector development.
It estimates real GDP growth at 4.8 per cent, with the outlook for 2026 at about 4 per cent.
GDP per capita fell 5.6 per cent, because the return of around 3.7 million Afghans outpaced economic expansion, with population growth of around 11 per cent in 2025.
Inflation averaged 3.6 per cent and then rose to 7.6 per cent by March 2026.
Domestic revenue was 19.8 per cent of GDP in 2025 and the current account deficit was an estimated 36.1 per cent of GDP.
Faris Hadad-Zervos, World Bank Country Director for Afghanistan, said the economy 'is showing resilience in the face of significant headwinds, but growth alone is not enough'.

Real GDP growth: 4.8 percent Change in GDP per capita: Down 5.6 percent Afghans returned: Around 3.7 million Inflation by March 2026: 7.6 percent Domestic revenue, 2025: 19.8 percent of GDP

Why it matters for exams: The gap between headline growth and falling per capita income is a clean illustration of how population change can cancel out GDP gains.

Kerala PSCUPSC

8 October 2026 Source: World Bank

In plain words

GDP per capita Gross domestic product divided by population — It can fall even when total output grows, if population grows faster.

Current account deficit Excess of payments abroad over receipts on current transactions — Estimated at 36.1 per cent of GDP for Afghanistan in 2025.