Renaissance Capital revises forecast for Azerbaijan's GDP growth

Finance Materials 19 September 2022 11:29
Baku, Azerbaijan Trend News Agency
Renaissance Capital revises forecast for Azerbaijan's GDP growth

Azerbaijan's GDP growth in 2022 is expected at 5 percent, Trend reports via an economic review from the Renaissance Capital investment bank.

The bank has increased its forecast for Azerbaijan’s economic growth by 2 percentage points, compared to the previous assessment.

According to the report, Azerbaijan’s GDP growth from January through August 2022 slowed down to 5.8 percent (6.2 percent over the first 7 months of 2022), “against the backdrop of a fall in the oil sector by 2 percent and an increase in the non-oil sector by 10.3 percent”.

“We expect that by the end of the year the growth will reach 5 percent year-on-year, while the oil sector will fall by 2.6 percent,” Renaissance Capital said.

Meanwhile, as the bank previously noted, Azerbaijan's economic growth will be largely supported by investments in the territories liberated from Armenian occupation in 2020.

“Increased fiscal sustainability and solid accumulated buffers should limit downsides, we argue. In coming years, growth should also be supported by investments ($1.5 billion, or 2.2 percent of GDP in 2022) directed towards the development of [liberated] territories,” Renaissance Capital said.