India, Dec. 13 -- KABUL - Afghanistan's economy is expanding for the second consecutive year, supported by low inflation and stronger revenues. However, rapid population growth, a widening trade deficit, and persistent poverty continue to weigh on the country's outlook, according to the World Bank's latest Afghanistan Development Update. The report provides a comprehensive assessment of recent economic developments and the medium-term outlook, with a special focus on return migration and employment.

Afghanistan's GDP is projected to grow by 4.3 percent in 2025, following growth of 2.5 percent in 2024. This expansion is largely driven by demand from more than two million recent returnees from Iran and Pakistan, who are stimulating activity ...