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EBRD expects economic recovery in Azerbaijan next year

Finance Materials 12 November 2020 17:18 (UTC +04:00)
EBRD expects economic recovery in Azerbaijan next year

BAKU, Azerbaijan, Nov. 12

By Zeyni Jafarov - Trend:

The European Bank for Reconstruction and Development (EBRD) forecasts the current account deficit in Azerbaijan in 2020 to be 3.6 percent of GDP, Trend report citing the EBRD’s report.

According to the bank, amid a significant decline in oil revenues, the external and financial balance is turning from a surplus into a deficit. Thus, the EBRD forecasted surplus for Azerbaijan's current account in 2019, which was 9.1 percent of GDP.

Regarding Azerbaijan's state budget balance, the EBRD forecasts a deficit of 6.3 percent of GDP for the current year, despite the surplus forecast in the previous year. The surplus of the balance of Azerbaijan’s state budget in 2019 was predicted by the EBRD at 8.1 percent of GDP.

According to the bank's report, the economy is expected to contract by 3 percent in 2020 and recover by 2.5 percent in 2021. Key risks for the development of events in the near future are associated with the possible resumption of the coronavirus pandemic, the continuing weakness of the oil market.

The EBRD is a leading investor in Azerbaijan and has so far invested about 3.3 billion euros in various sectors: energy, infrastructure, banking, industry, and commerce.

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