Azerbaijan, Baku, Nov.5 /Trend J.Nasibova /
The European Bank for Reconstruction and Development (EBRD) has updated forecasts for economic growth in Azerbaijan, according to which the real GDP growth at the end of 2012 is expected to be two percent and forecast is three percent for 2013, the bank said on Monday.
"Diversification of the economy is important, as the risks associated with dependence on the oil sector became apparent when oil prices in the world markets decreased. However, unexpected macroeconomic risks continue to mitigate a very strong financial position of Azerbaijan," the bank says.
According to experts of the Bank, the decline in oil production in Azerbaijan was partially offset by strong growth in the non-oil sector, which was mainly stimulated by the budgetary expenditure.
According to the report, the volume of foreign direct investment is projected at 1.4 percent of GDP in 2012.
Current account surplus of the balance of payments is expected for the year in the amount of 26.5 percent of GDP.
EBRD forecasts consumer inflation at 1.5 percent in 2012.