The EBRD revises the economic growth of Azerbaijan to the downside
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
-
Azerbaijan's financial standing continues to strengthen as the country's foreign currency reserves have surged to $71 billion as of January 1, 2025, according to the Ministry of Finance. This figure, which includes reserves held by the State Oil Fund of Azerbaijan (SOFAZ) and the Central Bank of Azerbaijan (CBA), far exceeds the nation's external debt, which stands at a fraction of its reserves, specifically nearly 14 times less. This robust reserve position reflects Azerbaijan's fiscal stability and the government’s strategic economic management.
-
According to operational data from the Ministry of Energy of Azerbaijan, in January 2025, the country produced 2.3 million tons of oil, including condensate, and 3.9 billion cubic meters of gas.
-
The State Oil Company of Azerbaijan (SOCAR) has opened a representative office in Albania and is set to launch a specific project this year, the Albanian company "Albgaz" announced.
-
"Azerbaijan is currently among 54 middle-income countries," said Shahmar Movsumov, head of the Economic Affairs and Innovative Development Policy Department of the Presidential Administration, during the presentation of the World Bank’s World Development Report 2024 in Baku on February 10.
Leave a review