The World Bank (WB) has maintained the forecast of GDP growth in Azerbaijan in 2019 at the level of 3.3%, based on the bank’s June report “Global Economic Prospects”.
According to the report, WB confirmed the acceleration of GDP growth in Azerbaijan in 2020 to 3.5%, and in 2021 – to 3. %.
In general, the GDP growth in the South Caucasus region is predicted to increase from 2.6% in 2018 to 4.2% by 2021, due to the consistent implementation of domestic reforms and infrastructure investment.
“Azerbaijan’s economy remains the largest in the South Caucasus. The country’s economic growth in the coming years will be accelerated due to the commissioning of a new gas pipeline,” reads the report.
Azerbaijan’s economy expanded at a moderate pace in 2018 aided by stable oil production and a modest pick-up in domestic demand, as higher oil earnings boosted fiscal spending and real wages rose, WB said. As a result, real GDP in 2018 increased by 1.4%.
While oil production plateaued, the hydrocarbons sector overall posted growth of 1.1% thanks to higher exports of natural gas. The non-energy economy expanded by 1.8%, reflecting greater dynamism in most economic sectors.
As for the other forecasts on Azerbaijan’s economy, EBRD expects that Azerbaijan’s GDP will grow by 3.5% in 2019, and by 3.3% in 2020. In addition, ADB expects that the economy of Azerbaijan will grow by 2.5% in 2019 and by 2.7% in 2020.
Meanwhile, according to the forecasts of the Fitch agency, the economy of Azerbaijan will grow by 3.5% in 2019. At the same time, the international rating agency Standard & Poor’s (S&P) expects the Azerbaijani economy to grow by 2.3% in 2019.
Also, IMF forecasts that the growth rate of the Azerbaijani economy can accelerate to 3.4% in 2019, and 3.1% in 2020.
The government of Azerbaijan expects GDP growth at 3.6% in 2019, 3.8% in 2020, and 3.6% in 2021. In 2018, GDP growth in Azerbaijan was 1.4%, and average annual inflation – 2.3%. (AzerNews/Business World Magazine)