BAKU, Azerbaijan, November 21. Short-term GDP growth in Azerbaijan is anticipated to be propelled by ongoing energy exports, the European Bank for Reconstruction and Development (EBRD) said, Trend reports.
According to the bank, despite a decrease in oil production and increased gas production, the combination of steady energy prices and growing global demand for Azerbaijan's energy products is expected to bolster substantial oil and gas revenues.
This, in turn, is likely to sustain current levels of public investment and government expenditure, the EBRD added, noting that, however, the persistently high inflation rate may mitigate the actual impact of fiscal stimulus, potentially leading to a further appreciation of the real effective exchange rate.
Consequently, the EBRD projects a GDP growth of 1.5 percent in Azerbaijan in 2023, increasing to 2.5 percent in 2024. The accuracy of this forecast hinges significantly on fluctuations in global oil prices and the influence of geopolitical developments on the demand for Azerbaijan's gas exports.
According to the latest forecasts of the Central Bank of Azerbaijan (CBA), GDP growth will amount to 1.5 percent in 2023.