This report presents a clear picture of Afghanistan’s continuing economic and social challenges. The economy recorded a second year of modest growth, but at 1.9 percent it remained too weak to keep pace with rapid population growth, causing living standards to decline. Structural constraints, limited job creation, a widening trade deficit, and reduced international assistance continued to slow recovery prospects. The report finds that 74 percent of Afghans remained subsistence insecure in 2025, with many households unable to meet basic needs. Rural communities, women, recent returnees, and drought-affected regions faced the most severe pressures. Rising debt, limited livelihoods, worsening healthcare access, and growing water shortages deepened household vulnerability. The report calls for urgent and targeted action, including continued international assistance, support for livelihoods and private sector development, expanded social protection, climate resilience investments, and lifting restrictions on women and girls to support a more inclusive and sustainable recovery.