The economic worries that are making Afghanistan’s economy collapse

After economic growth that outpaced that of other countries in 2018, the Afghan economy is struggling to maintain momentum as the United States threatens to impose a second round of crippling sanctions. The new…

The economic worries that are making Afghanistan’s economy collapse

After economic growth that outpaced that of other countries in 2018, the Afghan economy is struggling to maintain momentum as the United States threatens to impose a second round of crippling sanctions.

The new sanctions would essentially cut off Afghanistan from a lucrative market of Russian and Chinese companies. The sanctions could also sour the relationship between Moscow and Washington.

Afghan President Ashraf Ghani has said the threatened sanctions will probably lead to the collapse of the country’s economy. Since 2016, unemployment has hovered around 30 percent and poverty has skyrocketed, according to UN estimates.

Many other countries have failed to solve their economies’ woes. In India, which suffers from low growth and high unemployment, as well as more than $150 billion in external debt, Modi’s government this year boosted its economic growth target by 2 percentage points.

Meanwhile, in Iran, the unemployment rate has hovered around 10 percent in recent years and economic growth has lagged since the Islamic Republic struck a nuclear deal with world powers in 2015.

Click here to read the full story at The New York Times.

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