EBRD improves forecasts on economic growth of Azerbaijan

Business Materials 18 January 2013 20:40

Azerbaijan, Baku, Jan. 18 / Trend A. Akhundov /

The European Bank for Reconstruction and Development (EBRD) has improved its forecast for GDP growth in Azerbaijan in 2013.

This is stated in bank's report titled "Regional economic prospects in EBRD countries of operations" released on Friday.

If in October 2012, the bank projected GDP growth of the country by three percent, the new report forecasts four percent growth.

During 2012, Azerbaijan's GDP grew by 2.2 percent compared to the year before, amounting to 53.9 billion manat in current prices
Nominal GDP growth last year was 3.6 percent. The GDP per capita totaled AZN 884.5 5 (7 490.5 U.S. dollars).

Nominal GDP growth rate last year was at 3.6 percent. GDP per capita totaled 5,884.5 manat ($7,490.5).

"Successfully overcoming the global financial crisis, Azerbaijan's economy has slowed its growth amid falling oil production. Production decline was partially offset by a significant increase in non-oil sector, which is mainly stimulated by budget expenditures. Lack of diversification of the economy is an important factor, as the risks associated with high dependence on oil, have shown themselves during the crisis when oil prices fall. Relative recovery of production in the oil sector and the continued expansion of non-oil economy will lead to acceleration in GDP growth in 2013. Strong fiscal position of the country continues to mitigate sudden macroeconomic risks," the report said.

According to forecasts of the State Statistics Committee of Azerbaijan, the economic growth rate this year is expected to be at three to four percent.