The international rating agency Moody’s expects the acceleration of economic growth in Azerbaijan in 2019, the new report of the agency reads.
“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,” the Agency’s analysts note.
They predict Azerbaijan’s GDP growth rate to be 1.5 percent in 2018 and 3 percent in 2019, and connect this with the further increase in oil prices and the growth of exports of Azerbaijani products.
Earlier, Fitch Ratings and Standard & Poor’s approved the credit ratings of Azerbaijan. The reports of both agencies noted positive changes in the country’s economy.
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.
The data by Azerbaijan State Statistics Committee says that the country’s GDP amounted to almost 37 billion manats in January-June 2018, 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 the first half of 2017, and the oil and gas sector saw an increase of 0.1 percent.
Meanwhile, Moody’s also expects the loan portfolio of Azerbaijani banks to grow by 5 to 10 percent in 2018. In its new report, the agency changed its forecast for the banking system of Azerbaijan from negative to stable.