Economy of Azerbaijan Fell by 3.7%

In the ten months of 2016 the volume of GDP in Azerbaijan totaled 49.2 billion manat. The State Statistics Committee estimated decline in production of value added in the economy by 3.7%.

Since the beginning of the year the GDP deflator amounted to 13.8%. This index shows the ratio of the total price of a set of consumer and investment goods and services of a given year to the total cost of a similar kit for the base year’s goods and services. Real GDP is determined by dividing the nominal volume of GDP deflator.

The decline in GDP was due to the deterioration of the performance indicators in the construction sector by 27.4%.

The share of non-oil sector accounts for GDP in the amount of 32.3 billion manat, where the decline was 5.5%.

GDP per capita for the period amounted to 5,111.6 manat, by 4.8% less than in January-October 2015.

Due to the fall in world oil prices in February 2015, the government arranged sharp devaluation of the national currency on the economy that reacted to the deteriorating macroeconomic indicators. The standard of living decreased. Meanwhile implemented recovery measures do not give real results. Independent economists suggest conducting systemic reforms, but the government is not ready for this. ----08D