CBA predicts recovery of external, internal demand to continue

19 March 2021 17:39 (UTC+04:00)

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Expectations for the recovery of economic growth in Azerbaijan in 2021 are already being justified in the non-oil sector of the economy, Trend reports with reference to the Central Bank of Azerbaijan (CBA).

From January through February 2021, growth in the leading sector - the non-oil industry - amounted to 12.1 percent, in agriculture - 2.3 percent, in transport and storage – 10.9 percent.

Based on the results of monitoring the real sector of economy, the CBA noted that the index of entrepreneurial confidence in February tended to grow in the spheres of trade and services compared to January.

“In construction, there has also been a positive trend in orders to be fulfilled,” said the bank.

“In the short- and medium-term, the process of recovery of both external and internal demand in Azerbaijan is expected to continue. Domestic demand will be supported by stimulating fiscal, monetary and macroprudential policies, as well as reconstruction work in the territories of Azerbaijan liberated from Armenian occupation,” the CBA report reads.

On March 19, the CBA Board made a decision to keep the discount rate at the level of 6.25 percent. At the same time, the lower limit of the interest rate band was set at 5.75 percent, and the upper limit at 6.75 percent.

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