WB forecasts economic growth in Azerbaijan for next two years
In May’s report, the forecast was 1.9%.
“The economic development almost in the all countries of the region is now better than previous forecast. This was caused by increase of production and export in recent months. Average volume of the export is higher than global rate. Russia and Belarus have left recession behind. However, Azerbaijan, which suffered from cheap oil price, is expected to face economic lag this year. Increase of the forecast on economic growth of the region is related to decline in unemployment rate, normalization of inflation, reduction in budget deficit”, the bank said.
According to the bank, the GDP dropped 1.3% in Azerbaijan in the first half of 2017: “This was mainly caused by decline in oil GDP. As is known, Azerbaijan has joined the OPEC agreement on output cut. In spite of the crisis in the banking sector, the non-oil sector increased 1.7%. Agriculture and processing sector played an important role in here. Annual inflation made up 13.9%, which is connected with increase of tariffs of power energy, water and gas. This factor caused price rise in the country. Taking into account the acceleration of inflation, the Central Bank of Azerbaijan went on pursuing tight monetary policy. Increase of export and decline of import in the first half caused positive balance, which is equal to 4.4% of the GDP. Despite the fact that oil output fell sharply, the oil export increased by 42%, export of non-oil products by 11%. Manat rate against dollar strengthened 4.4%”.
Bank says the problems in financial sector have negative impact on the economy: “Provision of crediting dropped 15.6%, asset quality continues to deteriorate. Share of troubled loan in loan portfolio reached 13%, while it was 9% last year. Although manat deposit in the banks increased in the second quarter, the deposit portfolio narrowed 4.4%”.
Touching upon restructuring of IBA liabilities, the World Bank noted that Azerbaijan’s public debt will increase 6% as a result of this process at the end of the year.
In spite of rise in oil price, the economy will weaken 1.4% in 2017.
According to bank’s forecast, the GDP will grow 0.9% in 2018. This will be caused by launch of Shahdeniz 2.
The World Bank forecasts 1.5% economic growth in 2019.
Moreover, bank says the inflation will be 11.2% this year, 5% and 4.9% in the next two years.
Death toll in Izmir earthquake reaches 6, 257 wounded - UPDATED-2
MoD: Precise strikes were inflicted on the enemy
Armenian Armed forces inflict rocket attack on Alasgarli village of Azerbaijan's Tartar
MoD: Situation on the frontline is under the control of the Azerbaijani Army
Greece and France offered Turkey help regarding earthquake in Izmir
Head of Turkey’s MFA thanked Azerbaijan
Rally against Armenian terrorism was held in Venice
Azerbaijani President: "I think it is premature to speak about peacekeepers in conflict zone"
Ilham Aliyev: "Pashinyan's statement on Pakistani, Turkish special units is nonsense"
Ilham Aliyev: "Azerbaijani Army has demonstrated its advantage on the battlefield"
Putin discussed situation in Nagorno Garabagh at meeting of Security Council
Azerbaijani President: "Armenian state was created artificially on the lands that it never owned"
Jeyhun Bayramov: “News of earthquake occurred in Izmir saddened us very much”
One of the Armenian militants captured during military operations turned out to be a clergy - VIDEO
President Ilham Aliyev: "All three violations of ceasefire were committed by the Armenian side"
Azerbaijani state flag hoisted at four more outposts liberated from Armenian occupation
Azerbaijan offered help to Turkey regarding earthquake occurred in Izmir
President Ilham Aliyev was interviewed by Russia's Interfax news agency - UPDATED
Meeting of Azerbaijan and Armenia Foreign Ministers kicks off in Geneva
Azerbaijani MoD releases video reportage from the liberated Khudaferin village of Jabrayil region
Explosion takes place in Spitak medical center in Armenia
Armenia refused to deliver body of Armenian aged 84 to his family
Magnitude 6.6 quake shakes Turkey’s west coast, Greek islands in Aegean
Azerbaijani MFA: We call on the international community to condemn Armenia's act of vandalism
Russian deputy FM discusses Nagorno-Karabakh conflict with Italian ambassador
Kamran Aliyev: Armenians shot some captured Azerbaijani servicemen at close range
Azerbaijan expects activity of Human Rights Watch and Amnesty International to have effective result
Azerbaijan appealed to European Court regarding criminal acts of Armenia
Number of confirmed coronavirus cases reaches 54174 in Azerbaijan, 718 deaths
Azerbaijani Army has liberated 9 villages of Jabrail, Zangilan and Gubadly
Azerbaijan documents 1,022 fresh coronavirus cases, 480 recoveries, 10 deaths in the last 24 hours
Next meeting on resolution of Nagorno Karabakh conflict starts in Geneva
Investigation of 52 criminal cases launched regarding terrorist acts committed by Armenia continue
Azerbaijan puts several foreigners involved in battle by Armenia on internationally wanted
Hikmat Hajiyev: “Armenia commited numerous military crimes and crimes against humanity”
Let’s get acquainted with our military servicemen showing bravery in battles - VIDEO
MoD: Enemy, which can't resist our army, flee leaving their equipment - VIDEO
MoD: "Smerch", which shelled Barda, was destroyed - VIDEO
Enemy forces and equipment were destroyed - VIDEO
Azerbaijani MP suggests to establish shelters for beggars
Azerbaijan commemorates Khojaly genocide - PHOTOSESSION
As a result of the efforts of NaM members, the UN SC did not adopt a statement against Azerbaijan
It has been confirmed the fact that Kurdish-descent mercenaries fight on the Armenian side - VIDEO
Armenian army personnel refused to get engaged in battles
Azerbaijan’s MIA appeals to citizens