Azerbaijan Economic Forecast
June 7, 2022Growth kicked into a higher gear than the 2021 average in January-April, largely thanks to stronger activity in the non-oil and gas sector. Despite posting no more than moderate growth at the outset of the year, activity in the oil and gas sector appears to be gaining steam in Q2, on the back of soaring energy prices and as EU countries seek alternatives sources of supply to Russia. This drove an increase in oil and gas investment between January and April, helping to offset a sharp decline in investment in the non-oil and gas sector. However, the war in Ukraine is likely beginning to bite the Azeri economy via soaring inflation and lower remittances inflows from Russia, boding ill for private spending. Meanwhile, Armenia and Azerbaijan are reportedly inching closer to a peace deal, but the status of the disputed Nagorno-Karabakh region remains unresolved.
Azerbaijan Economic GrowthGrowth is forecast to slow this year. Rising inflation and weaker business confidence bode ill for household spending and investment activity, respectively, but higher global energy prices and rising natural gas production should help the economy to remain among the region’s most dynamic. Longstanding political tensions with Armenia remain a potential source of instability. FocusEconomics panelists see GDP growing 3.1% in 2022, which is unchanged from last month’s forecast, and 2.9% in 2023.
Azerbaijan Economy Data
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|Exchange Rate||1.70||-0.66 %||Jan 01|
|Stock Market||0.1||0.0 %||Jan 07|
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