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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Azerbaijan’s state oil company SOCAR signed a memorandum of cooperation with North Macedonian company ECM on Thursday, during a visit to Baku by North Macedonia's President Gordana Siljanovska-Davkova, an informed source told Turan.
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Discussions were held in Baku within the framework of the 29th session of the Conference of the Parties (COP29) to the UN Framework Convention on Climate Change, focusing on the "Decarbonization and Climate Adaptation of the Cotton-to-Clothing Value Chain." Among other topics, the state of cotton farming in Azerbaijan was also addressed.
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Azerbaijan has attracted significant interest from companies in both developing and developed countries, as well as from state and private sector representatives of at least 10 nations, regarding participation as shareholders in the Climate Finance Action Fund (CFAF), which has a total budget of $1 billion. The CFAF is one of Azerbaijan’s 14 key initiatives unveiled at COP29, Yalchin Rafiev, Azerbaijan's chief negotiator at COP29 and Deputy Foreign Minister, said at a press conference on Tuesday.
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The Azerbaijani government has proposed that the OPEC Fund participate in financing several renewable energy projects, including offshore wind energy development, green energy corridor initiatives, and a 1 GW project planned by SOCAR in partnership with the UAE-based company Masdar.
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