“The global shocks and the pandemic exert negative influence on growth rate of total demand and total supply in our country”, said in a statement the executive director of the Economic Reforms Analysis and Communication Center of the Azerbaijan Republic, APA reports.
He said at the global level as well, the demand-supply spiral is directed downwards. Nevertheless, in the first quarter of this year, the GDP growth in real terms in Azerbaijan will be possible:
“Especially, the non-oil industry, the plant-growing sector, the information and communication services will be main drivers of this growth. However, on the backdrop of sharp decrease of oil prices, it is projected that the GDP deflator will also decrease in the first quarter of this year. It can be forecasted that the GDP deflator having been decreasing since 2017, will drop to the lowest level in the first quarter of this year. And this in turn will exert negative influence on the nominal value of goods and services production in the country during the first quarter. The decrease of the GDP deflator also negatively impacts the payment balance, the international investment position and the collection level”.