WASHINGTON – The overall situation in Afghanistan will deterioratemodestly this year a top American spy master told lawmakers on Tuesday.

“The overall situation in Afghanistan probably will deteriorate modestlythis year in the face of persistent political instability, sustainedattacks by the Taliban -led insurgency, unsteady Afghan National SecurityForces ANSF performance, and chronic financial shortfalls,” Coats said.

The National Unity Government probably will struggle to hold long-delayedparliamentary elections, currently scheduled for July 2018, and to preparefor a presidential election in 2019, he said.

The ANSF probably will maintain control of most major population centerswith coalition force support, but the intensity and geographic scope ofTaliban activities will put those centers under continued strain, he added.

Afghanistan’s economic growth will stagnate at around 2.5 percent per year,and Kabul will remain reliant on international donors for the greatmajority of its funding well beyond 2018, Coats said.

Coats said Sunni violent extremists—most notably ISIS and al-Qa‘ida—posecontinuing terrorist threats to US interests and partners worldwide, whileUS-based homegrown violent extremists (HVEs) will remain the most prevalentSunni violent extremist threat in the United States.

“ISIS and al-Qa‘ida and their respective networks will be persistentthreats, as will groups not subordinate to them, such as the HaqqaniTaliban Network,” Coats said.