Following a notable contraction after the ITA’s ascendancy to power, international aid (US$ 3.5-4.0 billion in 2022) and improved security halted the steep economic decline from mid-2022. The exchange rate stabilized, international trade recovered, and the government could collect revenues and pay public employees' salaries. Still, the economy remains fragile, with significant challenges. The formal financial sector remains constricted, and most payments rely on the informal Hawala system. With the constant pressure of sustained population growth and the economy missing previous (external) growth drivers, high unemployment and underemployment plague the labor market. Moreover, with nearly half of the population living in poverty and the rest vulnerable, private consumption remains constrained.