The World Bank (WB) expects the Azerbaijani economy to grow by 3.5 percent in 2020, and by 3.7 percent in 2021, according to the WB’s Europe and Central Asia Economic Update on April 5.
The forecasts for the growth of the Azerbaijani economy increased by 0.2 and 1 percentage points, respectively compared to the previous report.
According to the report, the Azerbaijani economy grew at a moderate pace in 2018. The stable oil production and moderate growth in domestic demand contributed to that.
As a result, real GDP increased by 1.4 percent in 2018. As oil revenues greatly increased, fiscal spending and real wages increased.
The economic growth is expected to accelerate in the medium term as far as gas export grows.
The total amount of investments continued to decline at a moderate pace in 2018, while investments in the non-energy sector grew by 22 percent.
Higher oil prices led to an increase in current account surplus up to 15 percent of GDP (non-energy deficit of 10 percent of GDP) in the third quarter of 2018.
The export of oil increased by 44 percent in 2018, while export of non-oil goods increased 12 percent.
The import also grew by 25 percent due to an increase in state spending and domestic demand.
According to the report, the country’s international reserves increased up to $5.6 billion. The assets of the Azerbaijani State Oil Fund reached $38.5 billion, which is 82 percent of GDP.
