Non-oil sector growth in Azerbaijan will compensate decline in oil output

The non-oil sector growth rate of Azerbaijan's economy will significantly compensate the projected decline in oil production volumes in 2013, head of the IMF completed mission on Azerbaijan, Advisor to IMF Director on Middle East and Central Asia Raja Al Marzugi said at a press conference in Baku today. The mission has started since November 8.

"Short-term prospects for economic growth in the country are favorable," he said. "The non-oil sector growth rates mainly stipulated by public expenditure may reach 8 percent in 2013 and plentifully compensate the projected decline in oil production volume. The growth of non-oil GDP as of late 2012 is expected to hit 10 percent."

He said that the IMF predicts Azerbaijan's GDP growth in 2013 at 3.8 percent.

"Annual inflation has recently declined, but it may increase in 2013 given stable public expenditure and the impact of the recent rise in global food prices," he said. "Inflation as of late 2012 is expected to reach 3 percent."

The risks for the prospects of developing the global and regional economy shifted to reduce the rates of their growth, but the geopolitical situation may lead to an increase in the forecasts because of risks associated with the global oil supply.


/Trend/