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Russian rating agency forecasts Azerbaijan's GDP growth

13 September 2019 [15:40] - TODAY.AZ

By Azernews


By Leman Mammadova

Increasing of the capacity of the economy, rising of competitiveness and technological innovations enable attaining positive indices of economic growth in Azerbaijan.

Russia’s ACRA (Analytical Credit Rating Agency) expects GDP growth by 2-2.2 percent in Azerbaijan by the end of 2019, Zhannur Ashigali, associate director of the Sovereign Ratings and Forecasting Group at ACRA, told Trend. He added that the Agency expects almost same figure for 2020.

Ashigali stressed that the revival of domestic trade, as well as impetus from investments in fixed assets and the increase in hydrocarbon production can be considered the most relevant factors in this regard.

“This will lead to an increase in industrial production, which can show a growth in the range of 2.8-3 percent in 2019-2020,” he said.

Azerbaijani economy has shown the greatest growth among the CIS countries over the period of 1990-2017.

The country’s nominal GDP amounted to 44.473 billion manats ($26.17 billion) in January-July 2019, which is 2.5 percent more than in the same period last year. GDP per capita amounted to almost 4,500 manats ($2,647) for the reporting period.

The economic growth was recorded in all sectors with the exception of the construction sector. As for the oil sector, the growth amounted to 1.9 percent in January-July, and in the non-oil sector – for 3 percent.

Azerbaijan is a country with a well-developed industrial sector. Industrial output accounts for almost 60 percent of the country’s GDP. Increasing capacity of the economy, rising competitiveness and technological innovations enabled diminishing the country’s dependence on oil and gas exports.

Last year, GDP growth in Azerbaijan was 1.4 percent, and average annual inflation was 2.3 percent. The country's GDP reached 79.8 billion manats ($46.95 billion) last year, which is almost 15 percent higher than the forecasts.

The main share of GDP accounted for the non-oil sector, 46.89 billion manats ($27.59 billion). The share of the oil sector, exceeding the forecast figures by 51.2 percent, amounted to 32.9 billion manats ($19.36 billion).

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