OVERVIEW: The government led by the president, Hamid Karzai, will remain the dominant political force in 2008-09. The most important international relationships for Afghanistan remain those with the US and the NATO members that are involved in the International Security Assistance Force. The government is making slow but measurable progress in the area of economic reform. Strong growth in construction and a recovery in agriculture (provided drought is avoided) will support strong economic expansion in 2008-09. The exchange rate is becoming a concern.

Source: Afghanistan: Country outlook