KABUL — The coronavirus pandemic is expected to severely weaken Afghanistan's economy, the World Bank said on Wednesday, as donor governments struggle themselves and uncertainty over peace talks curb private investment. The World Bank said it was forecasting gross domestic product to contract between 5.5% and 7.4% in 2020, compared with growth of 2.9% in 2019, with more than 70% of the population expected to slip under the poverty line. "COVID-19 has hit Afghanistan in the midst of a difficult political transition, an intensifying conflict, and significant uncertainty regarding future grant support," Henry Kerali, World Bank Afghanistan director, told reporters. Due to the lockdown, domestic government revenue is expected to fall up to 30% at a time when the economists and diplomats say Afghanistan is facing a likely fall in foreign funding as countries deal with their own economic crises at home and the United States withdraws troops and attempts to usher peace talks between the insurgent Taliban and the Afghan government.

Source: International New York Times July 15, 2020 12:45 UTC