Afghanistan Under Taliban Rule, Economic Decline Amidst Social Improvements

As Afghanistan marks three years under Taliban rule, the country has experienced profound economic challenges and some social improvements. Before the Taliban takeover in 2021, Afghanistan’s economy was on an upward trajectory. However, with the change in regime, economic growth plummeted by 20%, and the economy has since struggled, showing signs of stagnation by 2023. Poverty levels, which stood at 47.1% in 2020, have marginally increased to 48% in 2023.

One notable shift has been the fluctuation in the value of the Afghan currency. After an initial surge in the US dollar’s value against the Afghan Afghani, the currency has stabilized, with the current exchange rate at 70 Afghanis per dollar—lower than it was before the Taliban took power.

Inflation, a major concern since before the Taliban’s return, has seen an average monthly decrease of 2% since 2023, easing some of the financial pressures on Afghan households. The healthcare sector has also seen some progress, with the Taliban government establishing 16 new public hospitals.

In terms of security, crime rates have reportedly declined under Taliban rule, with a noticeable reduction in criminal activities from 2021 to 2023. Despite these improvements in certain sectors, the daily lives of many Afghans remain fraught with economic hardship and uncertainty.

The contrasting trends highlight the complexity of life under Taliban rule—while certain areas have seen progress, the overall economic and social conditions still pose significant challenges for the Afghan population.