What to expect from the economy?
Forecasts of the Government of Azerbaijan and the European Bank for Reconstruction and Development (EBRD) on the growth of local GDP by the end of the year, almost the same. Bank indicates 2% mark, the government optimistic by 0.2 points.
Given that the overall economic growth in the past year was 0.1%, the difference in the assumptions of the international financial organizations and the executive branch considerable. By the way, in July of this year, the bank is talking about 2.5% of the projected growth.
The report found that the rate of decline in oil production influences, and it is another proof of the local economy totally dependent on energy. Compensation will not decline in the oil sector; this segment is negligible and is associated with the investment projects from the state budget. According to the report, is becoming increasingly urgent to diversify the economy, because the risks associated with high dependence on oil, the crisis period (relative decline in world oil prices) became apparent.
The neighbors in the region projected GDP growth above. For example, in Armenia in 2012 is expected to be taken in a 5% mark in the next year - 4%, and in Georgia this year, 6.5% next year - 5%.
As the method of calculation is different, the International Monetary Fund (IMF) expects 3.9% growth in the Azerbaijani economy and 2.7% next year. Expectations of the World Bank (WB) are, respectively, 3.1 and 3%. The Asian Development Bank forecasts GDP growth in Azerbaijan by 3% in 2012 and by 3.5% in 2013.
The government expects economic growth to top 2.2% in January, next year - 5.3%. - 17D-
Economics
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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.
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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.
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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.
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"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.
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