15:52 - 27.11.2024

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November 27, Fineko/abc.az. The EBRD predicts slowdown in average annual inflation in Azerbaijan in 2024 to 3.5% from 8.8% in 2023.

ABC.AZ informs with reference to the EBRD that according to forecasts, the current account surplus of Azerbaijan's balance of payments by the end of 2024 will make up 8.5% of GDP against 9.9% of GDP last year.

Referring to the current macroeconomic environment in Azerbaijan, the bank notes that GDP growth accelerated in 2024 and inflation slowed down. The oil and gas sector has returned to a growth trajectory due to strong demand for gas.

"Inflation remains within the central bank's target range," the EBRD notes.

The bank believes that energy exports and government investments will continue to boost country's GDP growth in the coming years.

"According to our estimates, real GDP growth of Azerbaijan in 2024 will be 3.8% and in 2025 - 2.7%. The forecast is very sensitive to fluctuations in oil and gas prices, as well as geopolitical instability in the region," the EBRD emphasizes.

The Ministry of Economy of Azerbaijan forecasts GDP growth of 4.2% in 2024 and 3.5% in 2025. The forecast for average annual inflation is 2.7% and 4.6%, respectively.

Azerbaijan's economy grew by 1.1% in 2023, and the average annual inflation rate was 8.8%.