Baku, Azerbaijan, April 11
By Azad Hasanli – Trend:
Azerbaijan’s GDP growth is forecast to reach 1.7 percent in 2018 on a rebound in construction and accelerate further to 2.0 percent in 2019 as industry begins to expand, says a report of the Asian Development Bank (ADB).
“Private consumption is expected to rise as the exchange rate stabilizes and economic activity improves, with higher public investment boosting the non-oil economy. On the supply side, industry is forecast to contract by 0.5 percent in 2018 with a further drop in oil production, though the launch of the Shah Deniz II gas field in the second half of the year will offset some of the decline,” says the report.
“In 2019, industry is expected to grow by three percent as gas production from Shah Deniz II expands. A planned doubling of public investment, notably on infrastructure and public housing, is expected to boost construction by six percent in 2018, after which expansion should slow to a more sustainable three percent in 2019 with the Southern Gas Corridor nearly completed,” says the report.
Import substitution programs should provide further impetus to agriculture, which is expected to expand by five percent annually in the next two years, according to the report.
“Services are projected to grow by two percent in both 2018 and 2019, reflecting modest gains in retail trade, transportation, and tourism thanks to a more competitive exchange rate and the construction of moderately priced hotels,” says the ADB report.
ADB was founded in 1966 and 67 states are its members. The bank’s headquarters is located in Manila, Philippines.
Azerbaijan became an ADB member in 1999. The country's share in the bank's capital is 0.5 percent.