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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An investigation led by Ghalib Toghrul, Chairman of the Board of the Center for Economic Research, has highlighted budgetary expenditures in the Azerbaijani districts of Aghdam, Fuzuli, and Khojavend, focusing on civil service projects linked to the reconstruction of territories liberated from Armenian occupation.
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On February 4, Azerbaijani Economy Minister Mikayil Jabbarov met with a delegation of the International Monetary Fund (IMF) led by Anna Bordeaux, head of the IMF mission in Azerbaijan, to discuss economic cooperation, financial sector issues and structural reforms, the ministry said.
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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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