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Analysis

Analysis: Why Afghanistan's Economy Can Grow Even as Income per Person Falls

Afghanistan's overall economy can grow while individual living standards deteriorate if population growth outpaces output.

By Margalla News Desk

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Updated

1 min read

News of growth in Afghanistan's gross domestic product may sound encouraging, but an important question remains: are ordinary households becoming better off at the same rate?

According to the World Bank's May 2026 report, real economic growth in Afghanistan was estimated at 4.8%, while a population increase of approximately 11% in 2025 contributed to a 5.6% decline in GDP per capita. The economic picture is incomplete without understanding this distinction.

If total output rises but the population, demand for employment and need for basic services grow even faster, the average person may see little benefit. Afghan families returning to the country also need housing, healthcare, education and sources of income.

The report points to unreliable electricity, limited financial services, weak investment and the trade deficit. Economic progress should be measured not only by GDP but also by per-capita income, job creation, real wages, access to food and the condition of local businesses.

This assessment does not rank the performance of any particular government or political party. It is an explanatory reading of economic figures published by the World Bank.

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Article: https://margallanews.com/story/mn-2026-10-13-afg-development-analysis-gdp-growth-versus-household-incomes