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Afghanistan economic meltdown one of worst in history, UN says
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The UN has forecast that Afghanistan’s gross domestic product will contract 20 per cent within a year following the Taliban’s takeover of the country, representing one of the worst economic meltdowns in history. “[It’s] an economic contraction that we’ve never seen before, ever,” said Abdallah Al Dardari, the UN Development Programme’s Afghanistan head and a former deputy prime minister of Syria. “I’m comparing with Venezuela, Lebanon and so on — we haven’t seen such an immediate, abrupt drop.” A UNDP report published on Wednesday said such a contraction took five years of civil war in Syria to achieve, and was expected to worsen to 30 per cent next year.
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Hundreds of thousands of workers are owed months of salaries, hospitals are on the brink of collapse and nine out of 10 Afghans are expected to fall below the poverty line by next year. More than half of the 39m population require food assistance, with about a quarter facing “emergency” food insecurity and potential famine. “Even in very bad situations like Lebanon, they still have access to some remittances from the Lebanese diaspora,” said Adnan Mazarei, an economist at the Peterson Institute think-tank in the US, and one of the report’s authors. “In the case of Venezuela, there’s still oil. Afghanistan is almost in a class by itself.
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“Even if the assets are unfrozen, humanitarian aid doubles and triples, it will not be enough to mitigate let alone avert the crisis that we’re seeing,” said Zafiris Tzannatos, a professor at the American University of Beirut. “Now we’ve fallen off the cliff. No matter how much we provide, still there is a crisis that is sliding to become a catastrophe.”