Abstract
Afghanistan is a fragile, aid-dependent country where insecurity combined with episodes of political uncertainty and adverse weather events have kept real GDP growth below 3 percent in recent years. In early September, U.S.-Taliban talks on a U.S. troop withdrawal as a basis for peace negotiations were suspended, with uncertainty as to the timing of their resumption. Presidential elections were held at end-September, but results have yet to be announced. The international community continues to support Afghanistan with civilian and military assistance and is pressing for intra-Afghan peace talks and an immediate reduction in violence. The authorities have expressed an interest in a new financial arrangement to support reforms.
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