The European Bank for Reconstruction and Development (EBRD) forecasts that Azerbaijan's average annual inflation will slow down to 3.5% in 2024 from 8.8% in 2023, Report informs referring to the bank.
According to EBRD forecasts, Azerbaijan's current account surplus will be 8.5% of GDP in 2024, compared to 9.9% of GDP last year.
Regarding the current macroeconomic environment in Azerbaijan, the bank notes that GDP growth accelerated in 2024, while inflation slowed down. The oil and gas sector returned to a growth trajectory due to strong gas demand.
"Inflation remains within the central bank's target range," the EBRD notes.
The bank believes that energy exports and government investments will continue to stimulate the country's GDP growth in the coming years.
"According to our estimates, Azerbaijan's real GDP growth will be 3.8% in 2024 and 2.7% in 2025. The forecast is very sensitive to fluctuations in oil and gas prices, as well as geopolitical instability in the region," the EBRD emphasizes.
Azerbaijan's Ministry of Economy forecasts GDP growth at 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, with average annual inflation at 8.8%.