Budget deficit in Azerbaijan to reach 14% of GDP

Baku. 7 April. REPORT.AZ/ Level of dollarization in Azerbaijan after the first devaluation in February of last year increased and this process continued throughout 2015.

Report informs, April report of World Bank's ECA Economic Update: The impact of China on Europe and Central Asia, declares.

According to the report, last year's GDP growth rate in the South Caucasus, plummeted in Central Asia and Russia.

So in South Caucasus, the figure was 3.3%, in Central Asia - 1.6%, in Russia - 1.3%.

World Bank Vice President for Europe andCentral Asia Cyril Muller noted that the majority of countries in Europe and Central Asia are faced with political, fiscal and monetary issues.As a result of stagnation in Russian export of non-oil sector fell by 6,6%.

"Portfolio of bank assets decreased in Azerbaijan and volume of problem loans increased.Oil Fund's assets amount to 33.5 bln USD, while in the beginning of the year this figure was equal to 37 bln USD.Low oil prices are the main factor that contributes to the economic problems and inflation.Gradual rise in oil prices will lead to the beginning of the economic growth in 2017, which will amount to 1.3% in 2018.The consolidated budget deficit will rise to 14% of GDP. Social expenses have made 4% of GDP, construction cost, including the Southern Gas Corridor project, - 4.25%.Budget deficit growth up to 4.7% of GDP expected in 2016", the report says.