The International Agency Moody`s downgraded the Azerbaijani economy. The agency revised its June forecast, and downgraded the real GDP growth from 1% to 0% in 2017.
In 2016, the agency predicted drop in GDP to 0.7%, according to Turan.
Moody`s notes that there are risks that could lead to lower growth of the economy, given the deterioration of the situation in the financial sector, the devaluation effect on the purchasing power of the population and the growth of double-digit inflation. The deterioration of the macroeconomic forecasts of Azerbaijan is connected with the assessment of the energy markets, and the decline in expectations for oil prices. In addition, Moody `s notes the increase in the pressure on the financial system of Azerbaijan, the balance of payments, as well as the loss of confidence in the national currency and the dollarization of the banking system.
It is predicted that the external debt in relation to GDP by year's end will grow from 11.2% in 2014 to 29.6%.
Real GDP is adjusted for inflation, and is expressed in prices of the previous or any other base year (contrary to nominal GDP, which is expressed in prices of the year.) Real GDP takes into account in what extent the GDP growth is determined by a real increase in production rather than increase of prices.—0—
Economics
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Azerbaijan Railways CJSC (AZD) transported 713,699 passengers in January 2025, marking a 15% increase compared to the same period last year, the company said on Tuesday.
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Last week, Azerbaijani media reported an impending increase in retail bread prices, attributing the rise to an increase in product weight. The following day, an official notification confirmed that the government had no intentions of sanctioning a bread price hike in the country. However, the threat of a price increase for this staple food remains for another reason.
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S&P Global Ratings has revised its risk assessment of Azerbaijan’s banking sector, upgrading the outlook from "stable" to "positive."
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In recent days, there have been claims that bread prices in Azerbaijan have risen. Social media users report that the price of bread has increased by 5-10 qepiks. According to consumer complaints, it is difficult to find weight information on factory-produced bread, commonly known as "zavod çörəyi" in Azerbaijan. In many cases, bread packaging does not include weight details. Similarly, bread sold at smaller bakeries and tandir houses often lacks information apart from the price.
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