Inflation in Azerbaijan is projected to decrease to 7 percent in 2018, and rise to 8 percent in 2019, according to the updated "Asian Development Outlook 2018: How Technology Affects Jobs" report of the Asian Development Bank (ADB).
ADB’s inflation forecasts are approximately the same as those of the Central Bank of Azerbaijan, which expects the inflation rate in the country to be 6-8 percent this year.
In the first quarter of 2018, inflation rate in Azerbaijan was 4 percent, while it was 12.9 percent in 2017.
"Combating inflation will remain a key challenge (for the government), requiring coordinated monetary and fiscal policies," the report said. "Over the next two years, monetary policy is expected to remain tight to curb inflation."
"Fiscal policy is expected to support growth, with additional SOFAZ (State Oil Fund of Azerbaijan) transfers financing a major expansion in public investment," the report noted. "Including these transfers, the central budget deficit is projected to narrow to 1.5 percent of GDP in 2018 and 0.8 percent in 2019."
The current account surplus of Azerbaijan is forecast to equal 6.9 percent of GDP in 2018 before returning to 6.2 percent in 2019, according to the report.
ADB was founded in 1966 and 67 states are its members. The bank’s headquarters is located in Manila, Philippines.
Azerbaijan became an ADB member in 1999. The country's share in the bank's capital is 0.5 percent.
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