Azerbaijan expects investment growth in non-oil sector in 2023
Investment in Azerbaijan's non-oil sector will rise in 2023, Azernews reports, citing Fitch Solutions.
Investment prospects in Azerbaijan have improved significantly and the real contribution of this component to economic growth will increase to 1.3 percent in 2023 from an estimated 0.9 percent in 2022.
From 2011 to 2021, this indicator averaged 0.8 percent.
According to the Central Bank of Azerbaijan, capital investment rose by 8.2% yearly in the first eleven months of 2022, following an annual decline of 8.2% yearly in 2021 and 7.5% per annum in 2020.
The report adds that the growth of capital investment in the non-oil-and-gas sector in 2021 was 7.2 percent, and in January-November 2022, it totaled 9.1 percent in Azerbaijan. Non-oil-and-gas sector benefitted from the EU sanctions on Russia.
“We expect these flows to remain high in 2023 and therefore, non-oil and gas capital investment will continue to rise,” the report added.
Fitch Solutions believes that another source of investment is likely to emerge in the EU and other countries that are seeking to increase their energy trade with Azerbaijan as an alternative source.
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