Azerbaijan, Baku / corr Trend , I.Khalilova / The Asian Development Bank (ADB) has updated the forecast on the increase of the Gross Domestic Product (GDP) its Asian Development Outlook 2007 (ADO 2007) Report for 6 of 7 Central Asian countries (except Tajikistan), ADB reports.
Azerbaijan's GDP growth for this year is also revised, from 25% to 27%, as is the forecast for 2008, from 17% to 20%. The economy grew at a torrid 36.2% year on year during the first 5 months of 2007, powered by large increases in oil production and exports (as new projects move toward full production), which spurred a growth in construction and services.
The sub-regional projection increased to 11.1% from 10.3%. In the first half of 2007, these countries showed evidence of heightened economic activity, the ADB experts state.
In Azerbaijan, the rise was due to the contribution of net exports as well as an increase in oil production of almost 65% (year on year) in the first half.
Kazakhstan's growth is being pushed higher by strong growth in domestic demand, despite a negative contribution of net exports of goods and non-factor services. The growth in Turkmenistan has been increased due to strong gas exports. Uzbekistan also continues to benefit from a favorable external environment, with net exports as the main contributor to growth.
Azerbaijan and Kazakhstan are now set to grow more quickly as a consequence of larger than expected increases in oil production and exports, and stronger domestic demand. In Turkmenistan, growth is supported by larger exports of natural gas. Economic performance in Uzbekistan is improving, with higher investment and exports, and growth has steadily climbed. In the first half, it grew at 9.7% and for 2007 growth should be 8.0%, a significant upward revision from the estimate in ADO 2007.