Kabul [Afghanistan], October 19 (ANI): The International Monetary Fund (IMF) on Tuesday said that Afghanistan's economy is set to contract up to 30 per cent this year and it is likely to further fuel a refugee crisis that will impact neighbours, Turkey and Europe, a media report said.
The IMF in its regional economic outlook update said on Tuesday that with non-humanitarian aid halted and foreign assets largely frozen after the Taliban seized power in August, Afghanistan's aid-reliant economy "faces severe fiscal and balance-of-payments crises", according to Khaama Press.
Underlining that turmoil in Afghanistan was expected to generate important economic and security spillovers to the region, the IMF emphasised that the current situation's impact could also be seen beyond the region.
The IMF also stressed that the turmoil was fueling a surge in Afghan refugees but it gave no detail on potential numbers.
"A large influx of refugees could put a burden on public resources in refugee-hosting countries, fuel labour market pressures, and lead to social tensions, underscoring the need for assistance from the international community," Khaama Press quoted IMF as saying.
The body also highlighted that the resulting drop in living standards threatens to push millions into poverty and could lead to a humanitarian crisis. (ANI)