Moody's expects further strengthening of Azerbaijan's economy in 2019

  08 August 2018    Read: 2591

The international rating agency Moody's expects the acceleration of economic growth of Azerbaijan in 2019, as appears from the report of the agency.

Thus, analysts of Moody's predict the growth of the economy of Azerbaijan at the rate of 1.5 percent in 2018, and at the rate of 3 percent in 2019.

"The favorable external environment - the average oil prices amounting to $54 in 2017 compared to $44 in 2016, the stability of the national currency and the decline in inflation led to a gradual recovery of the economy of Azerbaijan. We expect Azerbaijan's GDP growth rate in 2018 and 2019 to be 1.5 and 3 percent, respectively. This is conditioned by the further increase in oil prices and the growth of exports of Azerbaijani products," the agency's analysts noted.

Earlier, Fitch Ratings and Standard & Poor's agencies approved the credit ratings of Azerbaijan. The positive changes in the country's economy were noted in the reports of both agencies. In particular, S&P predicts that Azerbaijan's GDP will grow by an average of 3 percent until 2022, and nominal GDP will grow from 79 to 93 billion manats in the same period. At the same time, unemployment will remain at about 5 percent. Fitch Agency notes that the country will maintain broad political and social stability.

According to the State Statistics Committee of Azerbaijan, the country's GDP in January-June 2018 amounted to almost 37,01 billion manats, which is 1.3 percent more than in the same period of 2017.

At the end of the reporting period, the GDP produced in the non-oil sector of Azerbaijan increased by 2 percent compared to 1H2017, and the oil and gas sector saw an increase of 0.1 percent.

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