BAKU, Azerbaijan, October 17. The inflation rate in Azerbaijan is expected to decrease in 2023-2024, Trend reports via the Regional Economic Update for Europe and Central Asia from the World Bank (WB).
WB forecast inflation in Azerbaijan to stand at 9.5 percent in 2023, with a slowdown to 8 percent in 2024.
However, as the report noted, the inflation rate eases, “while remaining significantly above the CBA’s target range of 4+/-2 percent”. At the same time, Azerbaijan’s inflation rate in the current year is projected at 12.5 percent.
Meanwhile, WB forecasts Azerbaijan’s GDP growth to reach 4.2 percent in the current year, 2.8 percent the next year, and 2.6 percent – in 2024, in comparison with 5.6 percent growth in 2021.
“High energy prices in the medium term are expected to bolster the external sector, with the current account surplus remaining in double digits. Export growth will remain strong, propelled by high prices, while import growth is expected to ease beyond 2022, in line with the moderation in domestic demand. There are upside risks to the outlook such as the possibility to ramp up natural gas production, enabled by the MoU signed with the EU, and the possible adoption of reforms to foster non-oil sector growth in line with the new socio-economic development strategy,” the report said.
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