ADB: Non-oil sector to be main source of economic growth in Azerbaijan in next three years

Business Materials 6 June 2013 12:30 (UTC +04:00)

Azerbaijan, Baku, June 6 /Trend E. Aliyev/

In the next few years the non-oil sector is expected to become the main source of economic growth in Azerbaijan.

This was stated in the development prospective of Azerbaijan's economy in the Asian Development Bank's (ADB) report, 'Asian Development Outlook 2013: Asia's Energy Challenge'.

According to ADB's forecasts, mainly due to government spending in the non-oil sector and with a slight increase in oil production in 2014, the economic growth in Azerbaijan will accelerate to 3.1 per cent in 2013 and to 4.8 per cent by the end of 2014.

According to ADB's anticipations, Azerbaijan's energy sector will grow insignificantly until 2015.

The growth of this sector will expand presumably after 2015 with the completion of the development of gas fields and exploration of new oil fields.

'In the case of the development of the non-oil sector being provided by state funds, the current energy projects will be funded by direct foreign investment', the ADB's report said.

According to the bank's forecasts, inflation in the country will rise to six per cent in 2013 and up to seven per cent in 2014, which will reflect the public investment programmes and the increase of government spending, increase of wages and social spending.

However according to the ADB, moderate food inflation compensates for price increases in other areas.