By Leman Mammadova
International Monetary Fund (IMF) forecasts GDP growth at 2.7 percent in Azerbaijan in 2019.
This was noted in October review of the World Economic Outlook, published by the fund. In April 2019, the IMF forecasted GDP growth in Azerbaijan at 3.4 percent.
Azerbaijan’s GDP growth will slow down to 2.1 percent in 2020, according to the IMF. The Fund predicts 2.8 percent inflation in the country for 2019, and 3 percent for 2020.
However, in April, the IMF forecasted inflation for 2019-2020 at the level of 2.5 percent per year.
IMF expects a surplus in the balance of payments of Azerbaijan at 9.7 percent of GDP in 2019, while 10 percent in 2020. As for unemployment rate in the country, it will remain at 5 percent in 2019-2020, says IMF.
Earlier, IMF reported that in the next two years, inflation in Azerbaijan will be the lowest among the CIS countries.
The Fund believes that the high prices for oil and the increase in state investments favorably influence the economic growth of Azerbaijan.
Azerbaijani government forecasts GDP growth at 3.2 percent for 2019, 2.4 percent for 2020, average annual inflation of 3.7 percent for 2019, and 4.6 percent for 2020.
Azerbaijan’s GDP growth amounted to 1.4 percent, and average annual inflation amounted to 2.3 percent in 2018.
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).
IMF is an organization of 189 countries working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.
Azerbaijan joined the Fund on September 18, 1992. The IMF's primary purpose is to ensure the stability of the international monetary system - the system of exchange rates and international payments that enables countries and their citizens to transact with each other.
Leman Mammadova is AzerNews’ staff journalist, follow her on Twitter: @leman_888
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