EBRD report says inflow of foreign investments will ensure growth in Azerbaijan

Baku. 11 November. REPORT.AZ/ The European Bank for Reconstruction & Development (EBRD), which has recently published Transition Report, says of direct dependence of Azerbaijan’s economic growth from the net inflow of foreign direct investments.

Report informs, according to the report of 2015-16, the ratio of FDI to GDP of Azerbaijan will reach -3% this year or the highest index since 2011 (net inflow of investments in the country shows the negative value).

At that, the economic growth will also be similar (3%) to the highest indices since 2011.

The EBRD believes, current account of the balance of payments will have a surplus of 3% of GDP that is going to the lowest indicator since 2011. Active investing, according to the EBRD estimates, will provoke inflationary surge up to 5% by the end of 2015, although the CPI rise in 2011 (7.9%) will hardly be achieved.

The report says, 'currencies in CEB and SEE regions weakened alongside the euro following the launch of QE in the eurozone (by around 10-15 per cent against the US dollar since the start of the year, Chart 1). The weakening of currencies of commodity exporters (Azerbaijan, Russia, and Turkmenistan) reflects pressures emanating from lower commodity export receipts'.