EBRD forecasts Azerbaijan's GDP growth to 2.5 pct in 2021
By Ayya Lmahamad
The European Bank for Reconstruction and Development (EBRD) forecasts Azerbaijan's GDP with growth to 2.5 percent in 2021, Regional Economic Prospects September's report states.
According to the report, Azerbaijan’s economy is expected to decline by 3 per cent in 2020, with growth recovering to 2.5 percent in 2021.
Moreover, according to the analysts' estimates, Azerbaijan will return to the level of GDP per capita recorded in 2019, in 2025 or earlier.
It should be noted that Azerbaijan's GDP growth in 2019 was 2.2 percent.
"Following robust growth at the beginning of 2020, growth in the non-oil sector turned negative with the introduction of public health measures in March. (...) Output in the non-oil and gas sector reached a trough in June before it started slowly recovering. In total, non-oil GDP contracted by 1.7 percent year-on-year in the first eight months, while total GDP fell by 3 percent year-on-year in the same period," the report reads.
Moreover, it was noted that the combined assets of the Central Bank and the State Oil Fund amounted nearly to $50 billion, which is more than the projected 2020 GDP.
Additionally, Azerbaijan Economy Ministry forecasts the GDP decline at the level of 2.9-4.3 percent depending on oil prices in the world market. In 2021 Azerbaijan's GDP growth is forecasted at the level of 3.4 percent.
Established in 1991, EBRD invests in projects that contribute to the transition to an open market economy, as well as the development of private and business activities.
The Bank is a leading investor in Azerbaijan. The country has been cooperating with EBRD since 1992 to achieve further economic development. One of the main priorities of EBRD in Azerbaijan is to support the local corporate sector with direct financing. EBRD continues to pursue investments in energy projects, especially where there is a gap to improve efficiency and energy security.
Azerbaijan is the largest recipient of EBRD funds in the Caucasus, as well as one of the largest recipients of this organization’s funds in the CIS and Eastern Europe.
To date, the EBRD has invested €3.3 billion ($3.6bn) in Azerbaijan’s economy within 172 projects. The EBRD also provides business consulting services to small and medium enterprises, has provided technical support to improve financial performance and development of more than 1000 companies.
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