Azeri economy to slow down amid worldwide crisis: EBRD
The Azerbaijani economy is expected to grow 15 per
cent in 2009 after growth of 20 per cent in 2008, amid global
financial meltdown, the European Bank for Reconstruction and
Development (EBRD) predicts.
"Azerbaijan retains the title of the fastest growing economy in the EBRD region, and the top reformer of the year, but the impact of the global financial crisis will increasingly be felt," EBRD senior economist Anita Taci said. "The sources for foreign investment will become much scarcer and Azerbaijan`s economic growth will be affected from lower export demand and falling prices for oil and gas."
The EBRD said growth in the EBRD region was likely to fall sharply in 2009 in the face of global economic slowdown and financial market turbulence and it urged the countries where it invests to place a high priority on the stabilization of their banking systems.
The EBRD`s Transition Report 2008, which tracks the economic performance and progress on reforms across EBRD countries, predicted overall growth would fall to 6.3 per cent in 2008 from 7.5 per cent in 2007 and drop further to 3 per cent in 2009.
The EBRD`s chief economist Erik Berglof said continued growth in the region`s economy in the early stages of the global crisis was a testament to remarkable reform achievements. But the region now faced a much less benign international environment and outflows of capital from emerging markets, risk aversion and the recession in key OECD economies would test the resilience of transition countries.
Berglof added the rapid slowdown would mitigate the threat of inflation, while stabilization of banking systems would become the key priority for governments across the region. "Stabilization measures will need to be coordinated with other countries - both in western Europe and in other transition countries - taking account of the inter-linking ownership structures in the region`s financial system," he said.
The EBRD sees growth in Central Europe and the Baltics (CEB) slowing to 4.3 per cent in 2008 from 6.3 per cent last year and easing further to 2.2 per cent in 2009. Growth in south-eastern Europe is seen rising to 6.5 per cent this year from 6.2 per cent in 2007 and then falling back to 3.1 per cent next year. Growth in the CIS and Mongolia is predicted to slow to 7.3 per cent this year from 8.5 per cent and to drop to 3.4 per cent in 2009.
"Azerbaijan retains the title of the fastest growing economy in the EBRD region, and the top reformer of the year, but the impact of the global financial crisis will increasingly be felt," EBRD senior economist Anita Taci said. "The sources for foreign investment will become much scarcer and Azerbaijan`s economic growth will be affected from lower export demand and falling prices for oil and gas."
The EBRD said growth in the EBRD region was likely to fall sharply in 2009 in the face of global economic slowdown and financial market turbulence and it urged the countries where it invests to place a high priority on the stabilization of their banking systems.
The EBRD`s Transition Report 2008, which tracks the economic performance and progress on reforms across EBRD countries, predicted overall growth would fall to 6.3 per cent in 2008 from 7.5 per cent in 2007 and drop further to 3 per cent in 2009.
The EBRD`s chief economist Erik Berglof said continued growth in the region`s economy in the early stages of the global crisis was a testament to remarkable reform achievements. But the region now faced a much less benign international environment and outflows of capital from emerging markets, risk aversion and the recession in key OECD economies would test the resilience of transition countries.
Berglof added the rapid slowdown would mitigate the threat of inflation, while stabilization of banking systems would become the key priority for governments across the region. "Stabilization measures will need to be coordinated with other countries - both in western Europe and in other transition countries - taking account of the inter-linking ownership structures in the region`s financial system," he said.
The EBRD sees growth in Central Europe and the Baltics (CEB) slowing to 4.3 per cent in 2008 from 6.3 per cent last year and easing further to 2.2 per cent in 2009. Growth in south-eastern Europe is seen rising to 6.5 per cent this year from 6.2 per cent in 2007 and then falling back to 3.1 per cent next year. Growth in the CIS and Mongolia is predicted to slow to 7.3 per cent this year from 8.5 per cent and to drop to 3.4 per cent in 2009.
Here we are to serve you with news right now. It does not cost much, but worth your attention.
Choose to support open, independent, quality journalism and subscribe on a monthly basis.
By subscribing to our online newspaper, you can have full digital access to all news, analysis, and much more.
Subscribe
You can also follow AzerNEWS on Twitter @AzerNewsAz or Facebook @AzerNewsNewspaper
Thank you!