BAKU, Azerbaijan, September 23. The Central Bank of Azerbaijan (CBA) has decided to leave the discount rate unchanged at nine percent on September 20, Trend reports.
According to the CBA, the upper and lower limits of the interest rate corridor also remained unchanged at 10 percent and 7.5 percent, respectively.
"The decision to keep the discount rate unchanged was made given the carried-out macroeconomic analyses, updated forecasts, changes in factors of internal and external inflation, and the balance of risks," the bank emphasized.
Besides, this week, the CBA said that it expects to achieve the baseline scenario of inflation in 2023 and 2024.
Moreover, the bank has forecasted a current account surplus of the balance of payments at the level of 15 percent of GDP by the end of 2023.
The Asian Development Bank (ADB) has forecasted inflation in Azerbaijan this week.
According to the bank's forecast, average annual inflation in the country in 2023 will be at a level of 10 percent, and in 2024 - 8.5 percent.
Furthermore, the ADB expected Azerbaijan's GDP growth to reach 2.2 percent in 2023, and 2.6 percent in 2024.
Thus, the bank predicted the average annual growth of Azerbaijan’s GDP for 2023-2024 at 2.4 percent.
Moreover, ADB forecasted that Azerbaijan's current account balance will be in surplus this year.
According to ADB, this forecast reflects the decision of members of the Organization of the Petroleum Exporting Countries (OPEC) and other black gold exporters (OPEC+) to raise oil prices by tightening supply.
"High oil prices created a surplus of up to 10 percent of GDP in Azerbaijan's current operating balance in the first quarter of this year. However, amid a 40.5 percent increase in imports and a 10.4 percent decline in oil exports, the merchandise trade surplus in the first quarter fell 13 percent year-on-year from $5.4 billion to $4.7 billion," ADB noted.
Deputy Economy Minister of Azerbaijan Sahib Mammadov said at the conference "International Cyber Security Days" (ICSD 2023) that the New Generation Economy Strategy developed in Azerbaijan includes such areas as Big Data, artificial intelligence, the Internet of Things, digital marketing, and other areas considered necessary for the transition to a digital economy.
He noted that ensuring cyber security against the backdrop of an accelerating transition to digital government and creating technological infrastructure for the transition to a digital economy are very important issues.
"In the shortest possible time, the New Generation Economy Strategy was developed and submitted to the Cabinet of Ministers for consideration. I would like to note that the Strategy prioritizes information security and cyber security, as well as the creation of a sustainable technological infrastructure to ensure the transition to a digital economy. It is also necessary to ensure information security and cyber security in terms of reconstruction and construction works, economic recovery, and development in Karabakh and Eastern Zangezur," Mammadov said.
Besides, Fariz Jafarov, executive director of the Center for Analysis and Coordination of the IV Industrial Revolution (4sim) under the Ministry of Economy, said that Azerbaijan's digital economy strategy is expected to be approved by the end of this year after collecting feedback and proposals from the public and private sectors.