WB improves forecast on country's economic growth

The World Bank (WB) revised upward Azerbaijan's economy growth rate to 1.8 percent in 2018 and 3.8 percent in 2019, according to the bank’s report entitled “Global economic prospects.”

The World Bank (WB) revised upward Azerbaijan's economy growth rate to 1.8 percent in 2018 and 3.8 percent in 2019, according to the bank’s report entitled “Global economic prospects.”

In its previous report published in January 2018, the World Bank projected growth in Azerbaijan at the level of 0.9 percent in 2018 and 2.3 percent in 2019.

Many commodity exporters, including Azerbaijan, have eased monetary policy as inflation moderates, according to WB analysts.

“Although fiscal consolidation continues, its pace has generally diminished as revenues from commodity exports increased. Higher commodity prices and robust trade have supported the ongoing recovery,” the report said.

Private consumption is also recovering in Azerbaijan, boosted by wage gains, improving labor markets, and stronger consumer purchasing power amid moderating inflation and firming currencies, the bank noted.

“To varying degrees, export and import growth in commodity exporters have generally continued to recover, as domestic demand strengthens and global trade remains robust,” the report said.

In Azerbaijan, curbs on oil production were offset by stronger nonoil sector activity and fiscal stimulus measures, according to the WB.

Azerbaijan is projected to emerge from two years of disappointing growth, mainly in response to fiscal stimulus measures supported by higher oil prices and expanded natural gas production, according to the WB.

Azerbaijan joined the WB group in 1992.