ADB: Azerbaijan’s GDP growth rate to exceed energy demand
Azerbaijan, Baku, Oct. 14 /Trend E. Aliyev/
Azerbaijan's GDP growth rate until 2035 will be higher than the annual increase in energy demand, the Asian Development Bank's (ADB) Asian Energy Outlook said on Monday.
"According to the outlooks, Azerbaijan's GDP will increase to $61.9 billion by 2035 at an average annual rate of 4.4 per cent. By 2035 the country's population will increase to 11 million with a moderate growth of 0.7 per cent per year. As a result, the level of GDP per capita will grow more than twice compared to 2010 ($2,311) to $5,605," the document said.
According to ADB's outlook, the final energy demand in Azerbaijan by the standard business scenario will increase by three per cent per year over the outlook period.
Sectorial energy demand suggests a different rate of growth, according to expectations of the bank's experts.
"The most rapid growth rate of four per cent a year is expected in the transport sector which is conditioned by the increasing number of motor vehicles to 161.4 per thousand people in 2035. Energy demand in the industry will grow annually by 2.4 per cent and in other services (communal services, agriculture, etc.) by 2.3 per cent and in the non-energy sector by 2.2 per cent," the report said.
According to the bank's experts, the growth rates of demand will vary depending on the source of energy.
"The demand for electricity will grow by 3.5 per cent per year through revenue growth and the equipment used, while the demand for natural gas will amount to 2.2 per cent and be accompanied by the development of gas supply infrastructure across the country. These sources will gradually replace oil, the demand for which will be decrease by 0.7 per cent per year till 2035," the document said.
Established in 1966, ABD consists of 67 members. The ADB Headquarters is located in Manila, Philippines. Azerbaijan was granted membership on December 22, 1999 and the country's share of the bank amounts to 0.5 per cent.
The ADB's leading shareholders are Japan and the US (31.2 per cent of the total share capital), India and China (12.8 per cent) and Australia, South Korea and Canada (16 per cent).