EBRD forecasts growth in Azerbaijan's GDP in 2023

The European Bank for Reconstruction and Development (EBRD) forecasts the growth of the real gross domestic products (DGP) by 2.5 percent in 2023, Azernews reports, citing the bank’s updated Regional Economic Prospect.

According to the bank, the Eastern European and the Caucasus regions are facing enormous uncertainty in the short term over the ongoing Ukrainian crisis.

“The extraordinary growth factors present in the Caucasus in 2022 are likely to dissipate in 2023, bringing down the growth rates in these countries close to their medium-term potential. Inflation will continue to decelerate but stay at elevated levels in the whole region,” the bank noted.

The bank is more optimistic about 2024 and notes that improved global prospects in 2024 will have a positive impact on the economic recovery in Moldova and should bolster economic activity in the Caucasus.

The bank opined that inflation in the region may remain above target rates.

According to the bank, the whole region remains highly vulnerable not only to the prolonged war in Ukraine but also to the tensions between Armenia and Azerbaijan, and risks to growth are therefore skewed to the downside.

EBRD forecasts Azerbaijan’s GDP will increase by 2.7 percent.