Details added (first version posted on 10:35)
Baku, Azerbaijan, Jan. 27
By Anvar Mammadov - Trend:
Standard & Poor’s Global Ratings agency (S&P) has forecast Azerbaijan's GDP growth to average 3.3 percent over the next four years, the S&P said in a report.
On Jan. 26, the S&P revised its outlook on the long-term foreign and local currency sovereign credit ratings on Azerbaijan to stable from negative. At the same time, the agency affirmed the ratings at 'BB+/B'.
S&P expects Azerbaijan’s economy to grow 2.7 percent in 2018 and 3.5 percent in 2019, 2020 and 2021.
“We expect economic dynamics to gradually shift over the next few years," the report said. "In particular, we forecast average growth of 3.3 percent through 2021. Completion is approaching for the large Shah Deniz II (SDII) gas field project which will see Azerbaijani gas delivered first to Turkey and then to Europe. Elevated investment ahead of the SDII launch and a pick up in gas exports after that should benefit economic performance.”
Azerbaijan’s nominal GDP will continue to grow and by 2021 will increase from 70 billion manats ($41 billion) to 99 billion manats ($52 billion), the report noted.
According to S&P analysts, GDP per capita will be $4,600 in Azerbaijan in 2018, $4,800 in 2019, $5,000 in 2020 and $5,100 in 2021.
The agency also expects inflation rate to fall in Azerbaijan to five percent by 2021. The S&P forecasts eight percent inflation in 2018 and five percent inflation in the next three years.