"High energy prices are expected to support Azerbaijan’s economic growth in the near term," said the September issue of the EBRD's "Regional Economic Perspectives" report, APA-Economics reports.
"In Azerbaijan, the strong performance of the non-energy sector led to a 6.2 percent growth during the first seven months of 2022. The rising prices of hydrocarbons almost doubled export revenue, leading to large current-account and budget surpluses.
However, the robust growth recorded for the region in 2022 will taper off in 2023, highlighting concerns about its medium-term sustainability. For Azerbaijan, the uncertainty stems from energy prices but also from inflation. The May forecast of GDP growth of 4.5 percent for 2022 and moderation to 2.5 percent in 2023 remains unchanged," the report stated.
Inflation has now fallen to an average of 10 percent, which is still high but significantly lower than the average of 16.5 percent across the EBRD regions as a whole.