U.N.: Azerbaijan’s real GDP growth will reach 6.5% in 2012

Business Materials 19 January 2011 16:38

Azerbaijan, Baku, Jan. 19 / Trend N.Ismayilova /

Real GDP growth in Azerbaijan in 2011 will be 3 percent and in 2012 - 6.5 percent, the U.N. World Economic Situation and Prospects (WESP) for 2011 reads. The U.N. forecasts for the CIS region in general amounted to 4.1 percent.

Inflation in Azerbaijan will fall 4.6 percent in 2011 and 4.8 percent - in 2012. The U.N. projections for the CIS region amounted to 8.3 percent.

"Following a year of uneven recovery, the global economic growth in many countries in mid-2010 began to slow. Slower growth is expected to continue in 2011 and 2012, as weakness in the economy of the major developed countries continues to hinder the global recovery and pose a risk to economic stability in the world in the coming years," the report reads.

Based on the WESP, an unprecedented scale of economic policy measures adopted by governments during the early stages of the crisis, no doubt, helped to stabilize financial markets and encourage recovery. During 2010, these measures went to zero and probably will be less ambitious in the near future. Many governments, particularly in developed countries, are already shifting toward the austerity budget. This will negatively impact global growth in 2011 and 2012.

"Prices for most commodities recovered. The world crude oil prices fluctuated at around $78 a barrel in 2010, compared to an average of $62 in 2009. Nevertheless, oil prices are expected to slightly decline in 2011. The world prices for metals followed the same trends in 2010 and are expected to increase only slightly in 2011 and 2012," the report reads.

Non-OPEC countries are expected to increase oil production by 0.6 percent in 2011 to 52.9 million barrels a day. In 2011, the price per barrel of oil will fluctuate around $75 per barrel, reaching $80 per barrel in 2012.

According to the Azerbaijani State Statistics Committee, inflation in the country amounted to 5.7 percent and GDP growth - 5 percent in late 2010.