ADB reveals forecasts on nation’s economy growth
Azerbaijani economy will grow 1.7 percent in 2018 and 2 percent in 2019, the updated report of the Asian Development Bank (ADB) published on September 26 said.
The forecasts for the country’s economy growth remained unchanged, according to the bank.
In January-June 2018 Azerbaijan's economy grew by 1.3 percent, while in the same period of the previous year a 1.3 percent decrease in GDP was recorded. The authors of the report emphasize that growth for the first six months of this year was provided by increase in all sectors of the economy.
For example, compared to the six months of last year, in the first half of 2018 the oil sector grew by 0.1 percent, and the non-oil sector - by 2 percent. The industrial sector of Azerbaijan went up by 1.2 percent, agriculture - by 7.6 percent, mainly due to the expansion of cotton growing in the country.
The bank also improved the outlook for the current account surplus of the balance of payments from 6.9 to 7.9 percent of GDP in 2018 and from 6.2 to 10.9 percent of GDP in 2019.
Given stability of the Azerbaijani national currency's rate, the Bank reduced forecasts for inflation on Central Asia (ADB includes Azerbaijan to CA) by 0.1 percent to 8.4 percent for 2018.
The inflation forecast on Azerbaijan has been reduced from 7 percent to 4.5 percent for 2018 and from 8 percent to 5 percent for 2019.
In the first half of 2018, inflation in Azerbaijan and Kyrgyzstan was the lowest in the Central Asian region.
Average annual inflation plunged to 3 percent in the first half of 2018 from 13.9 percent a year earlier in Azerbaijan.
Prices for food products rose by 3 percent, other goods by 3.8 percent, and services by 2.4 percent, reads the report.
Azerbaijan joined ADB on December 22, 1999 and the country’s share in the bank’s capital is 0.5 percent.
Since 2003, the bank has approved the allocation of loans to Azerbaijan in the amount of more than $4 billion dollars for the implementation of more than 30 projects in the public and private sectors. The amount of technical assistance provided by the bank to Azerbaijan is almost $30 million.