By Leman Mammadova
The economy of Azerbaijan has been showing a steady growth in recent years and continues to remain the largest economy in the South Caucasus region.
The country’s GDP growth in January-July 2019 amounted to 2.5 percent against 0.2 percent for the same period in 2018, the State Statistical Committee of Azerbaijan said in a message.
In the reporting period, Azerbaijan’s nominal GDP amounted to 44.473 billion manats ($26.17 billion), which is 2.5 percent more than in the same period last year.
GDP per capita amounted to almost 4,500 manats ($2,647) for the reporting period.
The economic growth was recorded in all sectors with the exception of the construction sector. As much as a 16.9 percent growth was observed in information and communications; 6.3 percent in agriculture, forestry and fisheries; 4.3 percent in tourism and catering; 3.3 percent in industry; 2.9 percent in trade and repair of vehicles; 2.6 percent in transport and warehousing ; and 1.7 percent in other areas.
As for the oil sector, the growth amounted to 1.9 percent in January-July, and in the non-oil sector – for 3 percent.
Azerbaijan is a country with a well-developed industrial sector. Industrial output accounts for almost 60 percent of the country’s GDP. Increasing capacity of the economy, rising competitiveness and technological innovations enabled to diminish the country’s dependence on oil and gas exports.
The country is actively expanding trade operations with foreign countries and achieves great results due to the development of local production.
GDP growth is expected at 3.6 percent in 2019, 3.8 percent in 2020, and 3.6 percent in 2021. As for the forecasts of competent sources on the country’s economy in 2019, WB and EBRD predict approximately equal figures for GDP growth – 3.3 and 3.5 percent, respectively. Forecast figures of Fitch agency coincide with predictions of EBRD.
Last year, GDP growth in Azerbaijan was 1.4 percent, and average annual inflation was 2.3 percent. The country's GDP reached 79.8 billion manats ($46.95 billion) last year, which is almost 15 percent higher than the forecasts.
The main share of GDP accounted for the non-oil sector, 46.89 billion manats ($27.59 billion). The share of the oil sector, exceeding the forecast figures by 51.2 percent, amounted to 32.9 billion manats ($19.36 billion).
Leman Mammadova is AzerNews’ staff journalist, follow her on Twitter: @leman_888
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