...

Gazprombank predicts slowdown in inflation in Azerbaijan for next year

Finance Materials 17 October 2020 09:30 (UTC +04:00)
Gazprombank predicts slowdown in inflation in Azerbaijan for next year

BAKU, Azerbaijan, Oct. 16

By Zeyni Jafarov – Trend:

The risk of inflation in the Azerbaijani economy to 2021 remains low, Trend reports with reference to the report of Gazprombank on Azerbaijan.

The forecast for September 2020 assumed inflation in Azerbaijan at the level of 3 percent, which is 0.4 percentage points more than in the previous year. The slowdown in inflation in September this year was facilitated by the dynamics of food prices, whose growth slowed by 0.6 percentage points in annual terms and amounted to 4.3 percent.

According to September's forecasts, the basic principle of inflation in Azerbaijan will slow down to 2.9 percent. This is also facilitated by the stable exchange rate of the Azerbaijani manat, which will remain at the level of 1.7 AZN/USD.

Also, in 2021, economic growth may recover to 3.8 percent with the average oil price in the range of $ 55 per barrel and up to 1.5 percent at $ 45 per barrel. The peak of the economic slowdown has already passed in the second quarter of 2020, and as quarantine measures weaken, recovery will begin in the fourth quarter of this year.

Thanks to the reforms carried out, the Azerbaijani economy is more resistant to external shocks compared to the crisis events of 2015 and has the potential for accelerated recovery as domestic restrictions are lifted and external demand is restored.

---

Follow the author on Twitter: @jafarov_zeyni

Tags:
Latest

Latest