BAKU, Azerbaijan, August 1. Inflation in Azerbaijan is expected to reach 10.4 percent as of 2023, Trend reports.
According to Azerbaijani Finance Ministry, this figure exceeds the previous forecast of 6.9 percent by 3.5 percentage points.
So, as the ministry noted, the ongoing inflationary pressure and global geopolitical tensions have increased uncertainty about the future economic prospects.
However, the recession forecasts for a number of leading countries didn't materialize, and these countries maintained positive economic growth dynamics, the ministry said.
Besides, according to the ministry, the Chinese economy, a driver of the global economy, continued to recover at a quite high level.
Amid these tendencies, the International Monetary Fund (IMF) and the World Bank have updated and increased their preliminary forecasts for 2023.
According to IMF forecasts updated in July this year, the world economy is expected to grow by three percent in 2023, which is 0.2 percentage points higher than the April forecast. The World Bank also raised its forecast for global economic growth by 0.4 percentage points (to 2.1 percent) in June of this year.
Based on the above, the decisions of the OPEC+ countries are expected to contribute to reversing the earlier trend of declining energy prices observed at the beginning of 2023, leading to an increase towards the end of the year, the ministry added.
Previously, the Central Bank of Azerbaijan stated that the country can reach its inflation target of four percent by 2024.