BAKU, Azerbaijan, October 10. Last week Azerbaijani Small and Medium Business Development Agency (SMBDA) and the World Bank (WB) discussed the expansion of SME's access to financing, Trend reports.
In addition, WB is working with the government of Azerbaijan on implementation of three projects. Also WB improved its forecasts for Azerbaijan's economic growth. According to WB's forecast the growth of the Azerbaijani economy is expected at the level of 4.2 percent by the end of 2022, and 2.8 percent in 2023. The bank also expects Azerbaijan's economic growth to reach 2.6 percent in 2024.
Moreover, last week it became known that WB forecasts reduction of public debt in Azerbaijan. The World Bank forecasts that Azerbaijan's national debt in 2022 will make up 11.8 percent of GDP. According to the WB, in 2023 the country's public debt can reach 10.7 percent of GDP, and in 2024 - 11 percent of GDP.
In addition, the World Bank expects and increase of Azerbaijan's current account surplus. The ratio of Azerbaijan's current account surplus to GDP is expected to increase by 24.5 percent in 2022 and 16.7 percent in 2023. According to the WB, the ratio of current account surplus to GDP in Azerbaijan is expected at the level of 13.4 percent.
Furthermore, Net flows of foreign direct investment (FDI) in Azerbaijan are expected to decrease by 1.6 percent relative to the GDP in accordance with WB's forecasts.
The World Bank (WB) forecasts net flows of FDI in Azerbaijan to decrease by 1.1 percent relative to the GDP in 2023-2024, which is 0.1 percent less than the previous forecast.
Also Central Bank of Azerbaijan (CBA) continues to develop the concept of digital manat [country’s national currency].
Last week Azerbaijani Finance Minister Samir Sharifov met with the World Bank (WB) mission and the SECO delegation within the Medium Term Expenditure Framework (MTEF) capacity building project implemented jointly with the WB and the Swiss State Secretariat for Economic Affairs (SECO).
During the meeting, the parties discussed issues related to the implementation of the reforms on the implementation of this project, strengthening of the medium-term macro-fiscal framework, continuation of support towards improving the methodology for preparing the budget calendar, baseline projections, budget classification and key performance indicators and results in the pilot sectors where the MTEF is applied.