The economy of Afghanistan has improved significantly since 2002. This has been mainly due to infusion of billions of dollars in investments, international aid and remittances from Afghan expatriates. Increased Foreign Direct Investment (FDI) and improved domestic production has resulted in robust economic growth; inflation has been low and public finance management has made healthy progress.
Afghanistan, currently in an economic recovery stage, is in transition from a centrally planned and heavily regulated economy towards an open and free economy based on the market system. The economy has been through a structural change over the last decade after the political shift in 2001 occurred due to international intervention. The new constitution acknowledges ‘market economy’ as the economic system and guarantees promotion and protection of private investment (Article 10 of the Constitution). The economy has since been liberalized and the government has increasingly focused on private sector-led growth.