Renaissance Capital predicts growth of Azerbaijan's GDP

Finance Materials 28 August 2021 11:05 (UTC +04:00)
Renaissance Capital predicts growth of Azerbaijan's GDP

BAKU, Azerbaijan, Aug. 28

By Zeyni Jafarov - Trend:

Azerbaijan's GDP will grow by 3.5 and 2.2 percent, respectively in 2021-2022, Andrey Melashchenko, Economist of the Russian Renaissance Capital investment company for the CIS, told Trend.

According to Melashchenko, the non-resource sector is predicted to become the main driver of recovery and further growth of the Azerbaijani economy in 2021.

The specified area for seven months of 2021 showed an increase of 5.3 percent, he added.

"However, in 2022, the economic recovery will mainly be ensured by the recovery of fossil fuel production and the corresponding growth in the oil and gas sector, despite the fact that from January through July of 2021 this sector showed a decrease of 3.1 percent," Melashchenko said.

"Among the economic reforms, the budgetary rule introduced to limit budgetary expenditures in Azerbaijan is positively assessed. According to this rule, the upper limit of the consolidated budget expenditures is forecasted to be no more than 103 percent of the approved consolidated budget expenditures for the current year," the expert stressed.

"Despite the crisis caused by the worldwide coronavirus pandemic (COVID-19), Azerbaijan has maintained a fairly stable credit position, which was achieved thanks to the reserves accumulated in recent years, including the reserves of the State Oil Fund (SOFAZ) and the gold and foreign exchange reserves of the Central Bank of Azerbaijan (CBA)," the economist added.


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