EBRD forecasts Azerbaijan’s economic growth in 2021

By Azernews

By Ayya Lmahamad

The European Bank for Reconstruction and Development (EBRD) has forecasted Azerbaijan’s GDP growth by 2 percent in 2021.

In its Regional Economy Prospects report for June, the bank also said that Azerbaijan’s economy will grow by 2.5 percent in 2022.

“Rising demand for and price of oil, supported by an expected gradual increase of oil quotas in the coming months, will strengthen the overall economic performance in the second half of 2021. The economy is forecast to grow by 2 percent in 2021 and 2.5 percent in 2022,” the report reads.

Moreover, the Bank expects the economies of Eastern Europe and the Caucasus to grow by 2.8 percent in 2021 and 3 percent in 2022 as lockdowns are lifted and demand for exports remains strong.

Earlier, Azerbaijan’s Economy Minister Mikayil Jabbarov stated that the country’s forecast for the economy for 2021 is more optimistic compared to those of the international organizations.

“We can say that we forecast a double growth rate. If they forecast a growth rate of between 1.7 and 2 percent, we forecast a 3.4 percent economic growth rate based on the adopted parameters,” he said.

Set up in 1991, EBRD is the leading investor in Azerbaijan.

The country has been cooperating with EBRD since 1992 to achieve further economic development. One of the main priorities of EBRD in Azerbaijan is to support the local corporate sector with direct financing. EBRD continues to pursue investments in energy projects, especially where there is a gap to improve efficiency and energy security.