UN: Azerbaijan's GDP to grow by 1.8pct in 2018

By Azernews

By Sara Israfilbayova

The UN predicts an increase in Azerbaijan’s GDP by 1.8 percent in 2018.

The World Economic Situation and Prospects-2018 (WESP) report prepared by the UN Department of Economic and Social Affairs says that Azerbaijan's GDP will decrease by one percent in 2017 and will grow by 2.3 percent in 2019.

Azerbaijan is the only CIS country where GDP is expected to have contracted in 2017, due to a contraction of oil production. The launch of a new gas field will support a recovery in 2018–2019.

The restoration of the country's economy in 2018 and 2019 will help launch gas production as part of the second stage of development of Azerbaijan’s Shah Deniz gas condensate field, the report said.

Shah Deniz Stage 2 is a giant project that will add a further 16 billion cubic meters per year (bcma) of gas production to the approximately 9 bcma produced by Shah Deniz Stage 1.

Shah Deniz Stage 2, one of the largest gas developments in the world, will help increase European energy security by bringing Caspian gas resources to markets in Europe for the very first time. Shah Deniz gas will travel 3,500 kilometerss, to elevations of over 2,500 meters, and over 800 meters below the sea. 

The UN forecasts for 2018 exceed the expectations of the Azerbaijani government.

The government has forecast growth of country’s real GDP for the next year at 1.5 percent, according to the presentation of draft state and consolidated budgets for 2018 and the next three years.

Azerbaijan’s GDP next year is expected to reach 69.4 billion manats ($40.82 billion). At the same time, 47.6 billion manats ($28 billion) of the GDP will account for the non-oil sector, which will grow 2.9 percent next year.

About 83 percent of Azerbaijan’s GDP will account for the private sector.

Incomes of Azerbaijan’s state budget for 2018 are projected at 20.127 billion manats ($11.84 billion) [including centralized incomes - 19.476 billion manats ($11.46 billion), local incomes - 650.671 million manats ($382.75 million)], expenditures are projected at 20.905 billion manats (12.3 billion) [including centralized expenses - 20.182 billion manats ($11.88 billion), local expenses - 724.092 million manats ($425.94 million)].

It is projected that Azerbaijan’s state budget for 2018 will be based on oil price of $45 per barrel.