Economic Activities in Afghanistan: Primary, Secondary, Tertiary, and Quaternary

Afghanistan, with a population of 42,647,492 (World Bank, 2024), is ranked among the world’s 40 most populous countries. Located in South Asia, it covers a total area of 652,860 square kilometers, ranking 39th globally, just below Myanmar.

As of 2023, Afghanistan’s GDP was approximately $17.15 billion, and its GDP per capita was about $413.8, among the lowest in the world. (World Bank, 2023)

Afghanistan remains one of the world’s lowest-income economies. Despite facing significant challenges, it is striving to improve its economic standing and the well-being of its citizens.

Afghanistan Economic Structure & Sector Analysis

• Primary activities (agriculture): 34.7% of GDP.
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• Secondary activities (industry): 13.4% of GDP.
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• Tertiary activities (services): 46.4% of GDP.

Primary Sector of Afghanistan

With 58.74% of the land dedicated to agriculture, the country produces a variety of crops, including wheat, milk, watermelons, grapes, potatoes, cantaloupes, vegetables, rice, onions, and apples.

Despite agriculture contributing about 34.7% to GDP (2023), its significance lies in the variety and abundance of agricultural products. This sector sustains livelihoods and provides essential food supplies, showcasing the importance of agriculture to Afghanistan’s economy.

The country’s diverse geological landscape provides a rich array of natural resources. These include natural gas, petroleum, coal, copper, chromite, and more. These resources play a vital role in the economy, contributing to sectors such as mining, energy, and agriculture. Additionally, the abundance of arable land supports the agricultural industry, further boosting the economy.Afghanistan’s natural gas production in 2020 reached 165 million m³, ranking 79th globally. This production fuels economic growth and development in sectors such as energy and manufacturing.

Secondary Sector of Afghanistan

In Afghanistan, industrial products include bricks, textiles, soap, furniture, shoes, fertilizer, apparel, food products, non-alcoholic beverages, mineral water, cement, handwoven carpets, natural gas, coal, and copper.Manufactures in Afghanistan’s total exports are not significant, accounting for a small percentage in 2023. The country’s economy relies more on other sectors for export revenue.

Tertiary sector of Afghanistan

The tertiary sector in Afghanistan encompasses services that enhance productivity and meet needs through intangible goods like expertise and advice. Key activities include healthcare, education, banking, communication, transportation, and security services. These sectors play a crucial role in the country’s economic development and social well-being.Notably, Afghanistan’s tourism industry is negligible, with only 5,200 annual arrivals in a population of over 41 million, contributing a minuscule 0.000126432175666032 arrivals per capita. This sector’s insignificance stems from political instability, security concerns, and a lack of developed infrastructure, rendering it an inconsequential economic driver for the country.Another example of tertiary economic activity is the mobile cellular sector, with approximately 22 million subscriptions, supporting technological growth by enhancing communication, fostering innovation, and enabling digital services.

Military Activities and Economic Sectors of Afghanistan

It involves the primary sector, like resource extraction for military use. The secondary sector includes the manufacturing of military equipment. The tertiary sector covers services provided by the military, while the quaternary sector focuses on military research and development. Lastly, the quinary sector involves high-level military decision-making and strategy.

In Afghanistan, the military expenditure for 2023 is 280 million US dollars, which is 1.92% of the country’s GDP. The active military force consists of 170,000 personnel. This means there are about 4.3 active military members for every 1,000 people in the country.

International Trade of Afghanistan

Import Activities of Afghanistan

Afghanistan’s high import activities, accounting for 40.33% of GDP in 2023, are crucial for meeting domestic demand and driving economic growth.Afghanistan’s key import activities include wheat, tobacco, palm oil, packaged medicine, and rice. Its main import partners are the UAE (28%), Pakistan (15%), China (15%), Uzbekistan (12%), and Kazakhstan (9%).

Exports Activities of Afghanistan

Afghanistan’s total exports in 2023 amounted to $1.49 billion, accounting for 10.22% of its GDP. With export activities constituting a low percentage, their importance to the country’s economy is relatively low.Afghanistan exports coal, cotton, grapes, gum resins, and nuts. Its main export partners are Pakistan (42%), India (40%), China (4%), UAE (2%), and Turkey (2%).

Afghanistan economy challenges

Afghanistan, an extremely low-income South Asian economy, faces challenges of import drops, currency depreciation, and inflation post-Taliban takeover. Central bank reserves are dwindling, worsened by COVID impact and sanctions. Increasing Chinese trade adds complexity to the situation.

Sources

• World Bank Data
• IMF Data Mapper
• Kaggle Datasets
• Heritage Foundation: Index of Economic Freedom
• CIA World Factbook: Afghanistan
• Our World in Data: Human Development Index
• UN Comtrade Plus: Trade Flow
• Data.World: Country Travel Information
• SIPRI Military Expenditure Database

Last updated: August 2026