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WB maintains forecast on Azerbaijani GDP growth

7 June 2019 13:02 (UTC+04:00)
WB maintains forecast on Azerbaijani GDP growth

By Leman Mammadova

The World Bank (WB) has maintained the forecast of GDP growth in Azerbaijan in 2019 at the level of 3.3 percent, based on the bank's June report “Global Economic Prospects”.

According to the report, WB confirmed the acceleration of GDP growth in Azerbaijan in 2020 to 3.5 percent, in 2021 - to 3.7 percent.

In general, the GDP growth in the South Caucasus region is predicted to increase from 2.6 percent in 2018 to 4.2 percent by 2021, due to the consistent implementation of domestic reforms and infrastructure investment.

“Azerbaijan's economy remains the largest in the South Caucasus. The country's economic growth in the coming years will be accelerated due to the commissioning of a new gas pipeline,” reads the report.

Azerbaijan’s economy expanded at a moderate pace in 2018 aided by stable oil production and a modest pick-up in domestic demand, as higher oil earnings boosted fiscal spending and real wages rose, WB said. As a result, real GDP in 2018 increased by 1.4 percent.

While oil production plateaued, the hydrocarbons sector overall posted growth of 1.1 percent thanks to higher exports of natural gas. The non-energy economy expanded by 1.8 percent, reflecting greater dynamism in most economic sectors.

As for the other forecasts on Azerbaijan’s economy, EBRD expects that Azerbaijan's GDP will grow by 3.5 percent in 2019, and by 3.3 percent in 2020. In addition, ADB expects that the economy of Azerbaijan will grow by 2.5 percent in 2019 and by 2.7 percent in 2020.

Meanwhile, according to the forecasts of the Fitch agency, the economy of Azerbaijan will grow by 3.5 percent in 2019. At the same time, the international rating agency Standard & Poor's (S&P) expects the Azerbaijani economy to grow by 2.3 percent in 2019.

Also, IMF forecasts that the growth rate of the Azerbaijani economy can accelerate to 3.4 percent in 2019, 3.1 percent in 2020.

The government of Azerbaijan expects GDP growth at 3.6 percent in 2019, 3.8 percent in 2020, 3.6 percent in 2021. In 2018, GDP growth in Azerbaijan was 1.4 percent, and average annual inflation - 2.3 percent.

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Leman Mammadova is AzerNews’ staff journalist, follow her on Twitter: @leman_888

Follow us on Twitter @AzerNewsAz

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