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New gas pipeline to increase economic activity of Azerbaijan - WB

Finance Materials 24 September 2019 16:28 (UTC +04:00)

Baku, Azerbaijan, Sept. 24

By Mirsaid Ibrahimzade - Trend:

Activity in the South Caucasus region’s biggest economy, Azerbaijan, will be stimulated by commissioning of a new gas pipeline (Southern Gas Corridor), although this effect will be partially mitigated by the consequences of weak credit growth caused by problems in the financial sector, Trend reports with reference to the World Bank (WB) Global Economic Prospects report.

In general, growth in the South Caucasus region will amount to 4.2 percent in 2021, compared to 2.6 percent in 2018, subject to continued implementation of internal reforms and continued investments in infrastructure, according to the WB.

The bank believes that Azerbaijan, as an energy exporting country, will benefit from the recent rise in oil prices.

Unlike the forecast of the International Monetary Fund (IMF), the WB predicts a greater growth in real GDP (3.5 percent) in 2020, while the IMF predicted a 2.1 percent growth.

The Southern Gas Corridor is one of the priority projects for the EU and envisages the transportation of 10 billion cubic meters of Azerbaijani gas from the Caspian region through Georgia and Turkey to Europe.

The launching ceremony of the first stage of the Southern Gas Corridor was held in Baku on May 29, 2018, while opening ceremony of TANAP was held on June 12, 2018 in the Turkish city of Eskisehir.

The gas from the Azerbaijani Shah Deniz field has already gone through the first segment of the Southern Gas Corridor - from the Sangachal terminal to the expanded South Caucasus Pipeline.

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