Baku, Azerbaijan, Oct. 19
By Azad Hasanli – Trend:
Inflation level in Azerbaijan will decrease twice in the next two years, according to the World Bank (WB) Regional Economic Update report.
In 2017, inflation in Azerbaijan is projected at the level of 11.2 percent, according to the report. However, in 2018, inflation in Azerbaijan is forecast at 5 percent and at 4.9 percent in 2019.
Annual inflation in Azerbaijan was 13.9 percent in January-September 2017, according to the country’s State Statistical Committee.
High inflation is caused mainly by the growth in tariffs for electricity, water and gas, as well as food prices, according to the WB report.
To combat inflation, the Central Bank of Azerbaijan continues to tighten monetary policy, the report said.
At the same time, the WB forecasts gradual increase in private consumption in Azerbaijan. So, if in 2017, private consumption in the country is expected to grow one percent, in 2018, the growth will be 1.5 percent, and in 2019 - 1.9 percent.
Government consumption in Azerbaijan will also gradually increase, according to the report. Government consumption includes expenditures for maintenance of state apparatus, state governing bodies, etc.
According to the report, government consumption in Azerbaijan will decrease by 4.1 and 0.1 percent in 2017 and 2018, but will grow 0.5 percent in 2019.
Azerbaijan joined the WB Group in 1992.