Premium Essay

Shirzai

In:

Submitted By mohibshirzai
Words 587
Pages 3
Afghanistan and Pakistan are neighbor countries, located in south of Asia. While they have some economic similarities but totally different countries in economic structures and compositions. To illustrate the economic differences Pakistan and Afghanistan following are the main characteristics of these two states:

1. GDP (Gross Domestic Products) is one of the important elements in studying economy of countries. Based on World Bank data, Pakistan GDP was $ 225.1 billion in 2012. In the meanwhile, Afghanistan GDP in 2012 was $ 20.50 billion, which is approximately ten times less than Pakistan. It does make sense because firstly, Pakistan is bigger than Afghanistan in term of population and geography, which population and geography does have effects on its GDP. Secondly, Afghanistan has passed occupation and civil wars that all its infrastructures and revenue sources were demolished. Finally, in terms of GDP composition, Pakistan is better than Afghanistan. The household consumption in Pakistan is 82.5 %, while the household consumption in Afghanistan is 96.5%.
2. Unemployment is another important indicator of economic measurement. In Pakistan the unemployment rate is 6.2%, while the unemployment rate in Afghanistan is 35%, which shows nearly 6 fold higher than Pakistan. Globally, Afghanistan ranks 15 in term of unemployment, while Pakistan locates in 127. In deed the unemployment rate of both countries shows differences in term of sex and rural and urban areas. In Pakistan the unemployment rate of female in urban is 8.8%; while in rural areas the unemployment is higher for both sexes. Although, there is no specific data regarding the unemployment rate in rural area of Afghanistan but the evidence shows that unemployment is higher than the cities. Also, the unemployment of female is higher than male.
3. Inflation as an important indicator especially for the

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