IMF announces forecasts for economic growth

The International Monetary Fund (IMF) has forecast the GDP growth in Azerbaijan by 1.3 percent in 2018.

For 2019 and 2023, the Fund’s expectations are 3.6 and 2 percent, respectively, the updated World Economic Outlook report reads.

The forecast for the entire CIS region by the IMF analysts is 2.3 and 2.4 percent for 2018 and 2019 respectively.

For the global economy, the IMF predicts a 3.7-percent growth in the economy in 2018-2019. The Fund’s analysts point out that the steady recovery, which has been occurring since mid-2016, continues, while the growth of the world economy for 2018–2019 is projected to remain at the 2017 level.

At the same time, they note that the growth is becoming less balanced and in some leading economies, it may already have peaked.

“The risks of a slowdown in global growth have increased over the past six months, and the potential for unexpected improvements has decreased,” the report said.

Besides, the Azerbaijani government expects the growth of the country’s GDP at the level of 2 percent for this year, 3.19 percent for 2019, and 3.5 percent for 2020.

Moreover, the report says that the inflation in Azerbaijan for 2018 will be 3.5 percent, and then will fall to 3.3 percent in 2019, and to 3 percent - in 2023.

Earlier, in April, the Fund expected that the inflation rate in the country would be 7 percent in 2018, 6 percent - in 2019 and 4 percent - in 2023.

The inflation in Azerbaijan will be one of the lowest as compared to the CIS region and Georgia, according to the report.

The IMF, created in 1945, is an organization of 189 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.

The IMF’s primary purpose is to ensure the stability of the international monetary system—the system of exchange rates and international payments that enables countries (and their citizens) to transact with each other.

Azerbaijan joined the Fund on September 18, 1992.

The country received IMF loans for the support of economic reforms from 1995 to 2005. During the period, the amount of financial support reached $577.3 million. Azerbaijan fully repaid the IMF loans.

Since 2005, Azerbaijan sees no need for financial resources of the IMF. So, since 2006, the cooperation with the Fund is implemented within the framework of consultations and technical assistance on key areas of macroeconomic policy.