ADB makes optimistic forecast on Azerbaijan’s economy
By Nigar Abbasova
The economy of Azerbaijan will grow by 1 percent in 2017, according to an updated report issued by the Asian Development Bank (ADB). The new forecast indicators are the same as in the previous ADB report.
The bank also forecasted a 2.5-percent reduction in Azerbaijan’s economy in 2016 as compared to the 1 percent decline in the previous report.
Inflation rate forecast has also remained unchanged, with the predicted level standing at 12 percent in 2016. The rate, however, is expected to fall by more than twice in 2017 and stand at 5.2 percent.
The decrease in the level of inflation is expected to be reached through stabilization of the exchange rate of the national currency (the manat) and prices for imported goods.
The report said that drop in oil prices triggered increase in the external debt of exporter-countries. Economies of Central-Asian countries faced slowdowns in GDP growth and sharp deterioration of national currencies.
Countries, which possess large oil funds, may use the means to increase confidence in the financial market and keep the ratio between the debt and GDP at the level not exceeding 40 percent, according to the bank. The assets of the State Oil Fund of Azerbaijan (SOFAZ), which stand at $37 billion or some 49 percent of the GDP are considered to be sufficient in this regard.
Azerbaijan holds a stake of 0.5 percent in the bank's capital, while the leading shareholders of the ADB are Japan and the United States (31.2 percent of the total stock capital), India and China (12.8 percent), Australia, South Korea and Canada (16 percent), etc.
--
Nigar Abbasova is AzerNews’ staff journalist, follow her on Twitter: @nigyar_abbasova
Follow us on Twitter @AzerNewsAz