Economic growth slowed considerably in 2013 despite robust agricultural production as heightened uncertainty surrounding the political and security transition led to a slump in investor and consumer confidence. Revenue collection weakened in 2013, while Afghanistan’s large security expenditure obligations and high aid dependence pose the risk of crowding out important civilian operating and development spending. In spite of the transition-related uncertainty and underperformance, Afghanistan will need to stay focused on its medium term structural reform goals.