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's Small and Medium Business Development Agency (SME) and the Iraqi Federation of Chambers of Commerce have formalized a significant step towards enhancing bilateral economic ties with the establishment of the Azerbaijan-Iraq Business Council. The agreement, signed by Orkhan Mammadov, Chairman of the Board of Directors of SME, and Abdulrazag Al-Zuheir, President of the Iraqi Federation of Chambers of Commerce, comes within the framework of the Azerbaijan-Iraq Business Forum.
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Azerbaijan officially presented the updated digital government platform "myGov" at an event on September 17 in Baku, marking a significant step in the country's digital transformation. The event was attended by government officials, private sector leaders, media representatives, and industry experts.
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Minister of Economy Mikail Jabbarov held a meeting with the World Bank's Regional Director for Sustainable Development for Europe and Central Asia, Sameh Naquib Vahba, to review the ongoing and potential areas of collaboration between Azerbaijan and the World Bank. Both sides expressed their satisfaction with the progress made in joint projects aimed at boosting economic diversification and infrastructure development in Azerbaijan.
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Azerbaijan officially presented the updated MyGov digital government platform today in the capital city of Baku, marking a significant milestone in the nation’s ongoing digital transformation.
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