Kabul and New York, 30 April 2025 - A new report released today by the United Nations Development Programme (UNDP) warns that Afghanistan is sinking deeper into socioeconomic crisis, with widening inequalities that are accentuated for women and specific regions.
For the first time since 2019, Afghanistan experienced modest GDP growth of 2.7 percent in 2023-2024. Yet recovery remains fragile: the country's trade deficit surged to $6.7 billion in the first three quarters of 2024, up from $5.1 billion during the same period in 2023. The increase reflects stalled local production and weak job creation. The economy continues to depend heavily on imports and international assistance as a result.
75 percent of the population was subsistence-insecure in 2024, according to the report, up six percentage points from 2023. Access to adequate housing, healthcare and essential goods declined, while shocks, including economic and climate-related events, intensified. Female-headed households, rural communities, and internally displaced persons reported the most severe declines in income and expenditure.
Nine out of ten Afghan households, facing loss of productive assets, livelihoods, work and income opportunities, reported having to reduce daily household consumption with drawn-down spending, thereby lowering their resilience to shocks and deepening their vulnerability.
With ongoing restrictions on women's education and employment, the report indicates the gender gap has widened further, pushing women deeper into poverty and social exclusion. Rural areas, home to 71 percent of the population, remain significantly deprived of essential services such as healthcare, sanitation, and lack sustainable livelihoods.
"UNDP's current analysis and new data indicate the continuation of a deeply troubling trajectory for the Afghan people, who have been grappling with extreme vulnerability over the past decade. With the anticipated arrival of hundreds of thousands of returnees this year and a marked reduction in international support, Afghan communities will have to navigate substantial challenges that will increase pressures on an already highly tenuous daily subsistence. This will, as always, extend the unbearable plight of women and girls who are already the furthest behind," said Kanni Wignaraja, UN Assistant Secretary-General and UNDP's Regional Director for Asia and the Pacific.
"UNDP stresses the need for targeted interventions to address these challenges, recognizing that humanitarian assistance alone is not enough, and sustainable longer-term economic and social solutions are needed" added Stephen Rodriques, UNDP Resident Representative in Afghanistan. "Lifting the current restrictions on women is critical to ensure their wellbeing, preserve their basic human rights and stimulate badly needed economic growth".
Restrictions on women and girls are projected to cost the economy nearly $920 million between 2024 and 2026. This report calls for comprehensive support including for women-led businesses, micro, small and medium enterprises, agricultural value chains, sustainable livelihoods in eco-fragile regions, and social protection initiatives. These initiatives are essential for Afghanistan to build resilience, reduce reliance on aid, and achieve a lasting recovery.
Download report here
