IMF an­nounces fore­casts for eco­nomic growth

Azer News - - Nation - By Sara Is­rafil­bay­ova

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.

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