EBRD expects Azerbaijan’s economy to grow in 2018 (UPDATE)
Details added (first version posted on 19:04)
Baku, Azerbaijan, Nov. 7
By Azad Hasanli – Trend:
The European Bank for Reconstruction and Development (EBRD) expects Azerbaijan’s economy to grow 2 percent in 2018, according to an updated Regional Economic Prospects report published Nov. 7.
The bank’s analysts noted that the start of gas production within the second stage of development of the Shah Deniz gas condensate field will support the growth of Azerbaijan’s economy next year.
As for this year, the bank’s analysts expect Azerbaijan’s economy to shrink 0.5 percent. The EBRD has kept its expectations regarding the development of the country’s economy as in the bank’s May report.
“Growth in eastern Europe and the Caucasus as a whole is expected to pick up from near zero to close to 1.5 percent in 2017 as headwinds from low commodity prices and the earlier recession in Russia subside,” said the report. “A gradual recovery in the region is set to continue in 2018.”
The EBRD’s forecast for 2018 exceeds expectations of Azerbaijani government. The Azerbaijani government expects Azerbaijan’s real GDP to grow 1.5 percent in 2018. For 2017, the Azerbaijani government expects the country’s economy to grow 0.3 percent.
Azerbaijan has been a member of EBRD since 1992. Since then, the bank has invested about $2.8 billion in the country’s economy.