Reasons for declining GDP growth in Azerbaijan…

Azerbaijan's GDP growth is predicted to decline according to S&P, which forecasts zero percent growth for this year. The country's GDP is estimated to be AZN 131 billion (USD 77 billion) in nominal terms. In contrast, the government had previously forecasted a GDP growth rate of 2.7 percent for 2023. However, the State Statistics Committee reported that GDP in January-April 2023 only increased by 0.1 percent compared to the same period the previous year, amounting to 39 billion 986.5 million manat.

Despite these projections, other international organizations hold more optimistic views on Azerbaijan's economic situation. The World Bank's report "Global Economic Prospects" expects real GDP growth in Azerbaijan to reach 2.3 percent in 2023. Additionally, the Asian Development Bank (ADB) predicts GDP growth of 3.5 percent in 2023 and 3.8 percent in 2024.

Aydin Huseynov, a member of the Milli Majlis Committee on Economic Policy, Industry and Entrepreneurship, in an interview with Turan stressed the importance of the non-oil and gas sector in stimulating GDP growth.He notes that production in this sector has increased by 3.1 percent, indicating the country's transition to sustainable development without relying heavily on oil.

Economist Natig Jafarli, in an interview with RadioAzadlig, cites several reasons for the decline in Azerbaijan's economic growth. He highlights the significant role of the energy sector in GDP formation, noting that both oil and gas production have experienced declines. Lower-than-expected oil prices and the recent decrease in gas prices contribute to the weakening of GDP growth. Jafarli expresses disappointment that the non-oil sector has not produced the expected positive impact on the country's economy.