Azerbaijani Economy 10 january — 12:31

World Bank improved outlook for Azerbaijan

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World Bank (WB) predicts acceleration of the economic growth rates of Azerbaijan in 2018-2020 to 2.6%. According to the January Global Economic Prospects published on the bank's website, in 2018 Azerbaijan's GDP growth will be 0.9%, in 2019 - 1.5%.

In a previous report published in June last year, the bank forecasted the growth of Azerbaijan's GDP this year by 0.3 per cent, and in 2019 - by 0.2 per cent.

For 2020, economic growth in Azerbaijan is predicted by WB at 2.6%.

'The economy of Azerbaijan continued contracting albeit at a slower pace of 1.4 per cent in 2017 compared to 3.1 per cent in 2016. The economy is weighed down by the legacies of the 2014-16 oil price plunge, including a damaged banking sector, subdued credit growth, and lower government revenue. Weak monetary policy transmission, impaired by shallow financial markets, limited the effectiveness of monetary policy in fighting inflation, damaging real income growth. There were, however, signs of recovery in the non-oil sector and an increase in investment,' the survey notes.

For 2018, the Azerbaijani government forecasts GDP growth at the level of 1.5%, for 2019 - 4%, and for 2020 - 3.7%.

In January-November 2017, the decline in Azerbaijan's GDP was 0.2%, and the average annual inflation was 13.4%.

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