Weekly review of main events in Azerbaijani financial market

Finance Materials 25 April 2022 15:26 (UTC +04:00)
Weekly review of main events in Azerbaijani financial market
Kamran Gasimov
Kamran Gasimov
Read more

BAKU, Azerbaijan, April 25. The International Finance Corporation (IFC) informed last week about its investments in Azerbaijan since 1995, Trend reports.

According to the IFC, this figure made up around $500 million.

The funds have been spent on projects across sectors, including financial services, infrastructure, and manufacturing.

Last week, the IFC also said that together with the World Bank, it’s working on a Private Sector Diagnostic for Azerbaijan - a study aiming to identify policy options that will encourage private sector development.

Meanwhile, the corporation noted that it will cooperate with the Azerbaijani government on the development of a sustainable financial sector.

Besides, last week, International Monetary Fund (IMF) disclosed a forecast on a surplus in Azerbaijan's balance of payments until 2023. According to the forecast, in 2022 this figure will amount to 37.2 percent of GDP, and growth rate of the balance of payments in 2023 will decrease and amount to 27.8 percent.

IMF also upgraded forecast of Azerbaijani economy’s growth until 2023. According to the upgraded forecast, the economy will grow by 2.8 percent, and the country’s GDP will amount to $54.73 billion in 2022.

According to the fund, in 2023, the Azerbaijani economy will increase by 2.6 percent, and the nominal volume of GDP will stand at $55.98 billion.

Besides, the IMF predicted that inflation in Azerbaijan will equal 12.3 percent in 2022.

According to its another forecast, the average annual inflation in the country in 2023 is expected to reach 8.7 percent.

Azerbaijani State Service for Antimonopoly Policy and Consumer Market Control under the Ministry of Economy said that in March 2022 the food inflation amounted to 159.3 percent, thus having reached the highest level in the history the UN Food and Agriculture Organization (FAO).

At the same time, Russian Gazprombank said that Azerbaijan's fiscal policy will remain supportive in 2022, despite the planned reduction of the budget deficit to 3.5 percent of GDP.