Russian investment company predicts economic growth in Azerbaijan for 2021

Finance Materials 13 January 2021 10:10 (UTC +04:00)
Russian investment company predicts economic growth in Azerbaijan for 2021

BAKU, Azerbaijan, Jan.13

By Zeyni Jafarov - Trend:

The year 2021 is expected to become a year of recovery despite the continuing high global uncertainty amid the spread of the coronavirus pandemic, Sofia Donets, Senior Economist of the Renaissance Capital investment company for the CIS, told Trend

According to Donets, Azerbaijan's GDP growth in the coming year is envisaged at the level of 2.9 percent.

“Progress with vaccinations, experience gained in detecting and treating the virus, a gradual easing of quarantine restrictions and an improved business environment should support a smooth recovery of global economic activity. Maintaining substantial fiscal stimulus and ultra-low rates in the largest developed countries will increase interest in the assets of emerging markets from international investors,” she said.

“Azerbaijan is known by a high share of the public sector in the economy and in the labor market, as well as initially low unemployment (nearly 5 percent). These factors can also influence the attraction of investments to the country's economy," said the senior economist.

Donets also noted that the dynamics of oil prices remains an important factor for Azerbaijan, both in terms of economy and markets.

“The share of the oil and gas sector in Azerbaijan's GDP is over 40 percent, and in merchandise exports - over 90 percent. The deteriorating situation with the virus, including the emergence of new strains, remains the main risk for the energy market. However, positive trends are also possible in terms of global oil prices,” she added.

Earlier, Renaissance Capital said that Azerbaijan, as one of the oil exporting countries in the CIS, finished 2020 with a moderate decline in GDP at 3.5 percent, which is considered a small indicator compared to the world oil exporting countries.


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