Azerbaijan’s economic growth to speed in 2010: EBRD
The Azerbaijani economy grew by 5 per cent in 2009, after expansion
of 10.8 per cent in 2008, with further growth of 7.1 per cent
expected in 2010, the European Bank for Reconstruction and
Development (EBRD) estimates.
The improved global economic outlook and the recovery in oil prices and export demand are behind the economic rebound in Azerbaijan. However the financial crisis has emphasized once again the importance of economic diversification that remains a major challenge, says the 2009 Transition Report, presented by the EBRD’s Baku Resident office.
Commodity rich countries like Azerbaijan, Mongolia, Turkmenistan, and Uzbekistan, whose financial systems were smaller and less affected by the crisis, and whose growth is mostly driven by commodities, are also expected to grow faster in 2010, the bank concluded.
In general, this year’s Transition Report points out there are likely to be significant cross-country differences in output growth in 2010, masked by an average growth rate for the region of about 2.5 percent.
"It is clear that the social costs of the global economic crisis are only likely to be felt in earnest next year, when corporate bankruptcies and unemployment will continue to rise. Growth over the medium term in the EBRD region is also likely to be below the trend experienced over the last decade," said EBRD Chief Economist Erik Berglof.
Factors restraining growth in 2010 include the subdued pace of export market recovery (particularly in the Euro area) and continuing tight credit conditions, as banks continue gradually to shrink their assets in the region and as lending to households and small firms remains constrained by rising non-performing loans.
The 2009 Transition Report is the EBRD’s annual update on reform progress and economic developments in central and eastern Europe and the Commonwealth of Independent States (CIS).*
The improved global economic outlook and the recovery in oil prices and export demand are behind the economic rebound in Azerbaijan. However the financial crisis has emphasized once again the importance of economic diversification that remains a major challenge, says the 2009 Transition Report, presented by the EBRD’s Baku Resident office.
Commodity rich countries like Azerbaijan, Mongolia, Turkmenistan, and Uzbekistan, whose financial systems were smaller and less affected by the crisis, and whose growth is mostly driven by commodities, are also expected to grow faster in 2010, the bank concluded.
In general, this year’s Transition Report points out there are likely to be significant cross-country differences in output growth in 2010, masked by an average growth rate for the region of about 2.5 percent.
"It is clear that the social costs of the global economic crisis are only likely to be felt in earnest next year, when corporate bankruptcies and unemployment will continue to rise. Growth over the medium term in the EBRD region is also likely to be below the trend experienced over the last decade," said EBRD Chief Economist Erik Berglof.
Factors restraining growth in 2010 include the subdued pace of export market recovery (particularly in the Euro area) and continuing tight credit conditions, as banks continue gradually to shrink their assets in the region and as lending to households and small firms remains constrained by rising non-performing loans.
The 2009 Transition Report is the EBRD’s annual update on reform progress and economic developments in central and eastern Europe and the Commonwealth of Independent States (CIS).*
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