European Bank for Reconstruction and Development (EBRD) said that the risks for Azerbaijan related to the high dependence on oil, have become obvious during the global financial crisis.
In the economic report released by the Bank on July 25, there is a recommendation on strengthening of Azerbaijan's economic diversification to reduce the impact of the crisis.
The report says that economic growth has slowed, along with a reduction in the rate of oil production, what have been only partially compensated by the non-oil sphere, and was stimulated by the public expenditure.
The EBRD has corrected the forecast of economic growth in 2012, reducing it from 3.5% to 2.5%. At the end of next year, the bank predicts the economy within 3%.
Last year was most unfavorable for Azerbaijan, where GDP growth was only 0.1%. Experts believe that Azerbaijan’s very strong financial position continues to soften unexpected macroeconomic risks.
Economics
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According to the State Customs Committee, in the first eleven months of this year, Azerbaijan transported 6.96 million tons of cargo by rail, worth $3.01 billion. This represents a 4% decrease in volume and a 10.1% decline in value compared to the same period in 2023.
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The Cabinet of Ministers of Azerbaijan has approved a set of regulations to govern the approval of agreements under the country’s competition law, aimed at fostering compliance with legal frameworks and enhancing market transparency.
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Azerbaijan's ambitious program to restore territories liberated from Armenian occupation has attracted attention due to the extensive use of single-source procurement methods, raising concerns about transparency and corruption.
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Azerbaijan recorded a 2% increase in wheat imports from January to November 2024 compared to the same period in 2023, underscoring its continued reliance on external sources to meet domestic demand. This growth comes amid a significant decline in domestic wheat production, which decreased by 148,100 tons in 2024, further intensifying the need for imported supplies.
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