Azerbaijan’s economy is projected to expand by 1.8 percent y/y in 2018, supported mainly by the fiscal stimulus, says a new World Bank report, Cryptocurrencies and Blockchain: Europe and Central Asia Economic Update.
‘The growth is expected to accelerate in the medium term, driven by an expansion of natural gas production, as the main pipeline that will deliver gas to Europe from the Shah-Deniz II field will be operational by end-2018. Since the OPEC-deal is extended until the end of 2018, Azerbaijan’s crude oil output is not expected to decline much further. Moreover, average oil prices will firm up somewhat in 2018 relative to 2017 and are projected to stabilize at robust levels in the medium term. Non-oil GDP growth is expected to accelerate in 2018, fueled by an 83-percent y/y increase in budgeted public investment’.
According to the report, Azerbaijan’s external sector is expected to continue to improve due to an increase in hydrocarbon production and a continuation of non-oil export growth, supported by a rise in external demand and enhanced government support to exporters of non-oil products.
The WB thinks the economic growth in Azerbaijan will be 3.8% in 2019, 3.2% in 2020.