ADB Forecasts Cut in GDP Growth Rate in Azerbaijan by 2009
Azerbaijan, Baku / corr. Trend I.Khalilova / The Asian Development Bank (ADB) forecasts a rise of the gross domestic product (GDP) in Azerbaijan to be 25% in 2007, according to the ADB 2007 Report on "Development of Asia. Growth and Changes".
This will be possible mainly due to a production upsurge at the Azeri-Chiraq-Guneshi (ACG) oil fields and Shah Deniz gas field, exports and at the expense of the expansion fiscal policy.
In 2008 the ADB forecasts a cut in the GDP growth rate, which is expected to comprise approximately 17% of moderate oil and gas production and a decrease in direct foreign investments.
Furthermore, a rise of internal private investments will be moderate. The Government should encourage structural reforms for their considerable increase. The growth rate of the non-oil sector is expected at an average of 9.6% by 2009.
The Government acknowledges that it is necessary to carry out reforms and policies in which to continue the growth of the economy once oil reserves are exhausted, the document states.