The European Bank for Reconstruction and Development (EBRD) expects Azerbaijan’s economy to grow by 2% in 2018, according to an updated Regional Economic Prospects report published on November 7.
The bank’s analysts noted that the start of gas production within the second stage of development of the Shah Deniz gas condensate field would support the growth of Azerbaijan’s economy next year.
As for this year, the bank’s analysts expect Azerbaijan’s economy to shrink by 0.5%. The EBRD has kept its expectations regarding the development of the country’s economy as in the bank’s May report.
“Growth in eastern Europe and the Caucasus as a whole is expected to pick up from near zero to close to 1.5% in 2017 as headwinds from low commodity prices and the earlier recession in Russia subside,” said the report. “A gradual recovery in the region is set to continue in 2018.”
The EBRD’s forecast for 2018 exceeds expectations of Azerbaijani government. The Azerbaijani government expects Azerbaijan’s real GDP to grow by 1.5% in 2018. For 2017, the Azerbaijani government expects the country’s economy to grow by 0.3%.
Azerbaijan has been a member of EBRD since 1992. Since then, the bank has invested about $2.8 billion in the country’s economy. (Trend/Business World Magazine)