Finance Ministry: Azerbaijan's real GDP grows in next year

Next year, the real growth rate of Azerbaijan's gross domestic product (GDP) is expected to be 2.4%, or AZN 118.4 billion, Azernews reports.

According to the information, the GDP of the non-oil and gas sector is forecasted at 4.6%, or AZN 84.2 billion.

Recall that in mid-2023, the government amended the budget by increasing public sector salaries and public investment, which provided a financial stimulus to the economy. Domestic demand was also supported by a significant increase in household credit by 25.8% (year-on-year) between January and July 2023. However, demand pressures kept inflation at a relatively high 9.4% in July 2023, and the central bank responded by raising the discount rate to 9% in May 2023."

As the EBRD emphasises, the economy of Eastern Europe and the Caucasus region, which includes Azerbaijan, will grow by 1.9% in 2023 (forecast unchanged) and by 3.1% next year, in 2024, by 0.2 percentage points less.