Afghanistan faces significant economic challenges exacerbated by political instability and limited market competition. The economy is largely reliant on agriculture, informal trade, and external aid, with limited industrial diversification. High unemployment and poverty rates further constrain domestic growth. Government policies aim to stabilize conditions but often lack infrastructure and execution capacity. The regulatory environment is underdeveloped, with weak enforcement of property rights, deterring foreign investment. Society is characterized by a young, growing population but faces limited access to education and healthcare. Climate challenges, including water scarcity and land degradation, hinder agricultural productivity. Health outcomes are poor due to limited medical services.
