CBA: "Economic growth to continue in Azerbaijan next year"

Against the background of high-level uncertainties in the external environment, the economic growth in the country is expected to continue next year, Report informs, citing a statement by the Central Bank of Azerbaijan (CBA) "On the main directions of monetary and financial stability policies for 2022".

The statement said that global economic growth is expected to continue in 2022 amid the risks and growing uncertainty triggered by new strains of the COVID-19 virus.

In keeping with the October report of the International Monetary Fund (IMF), the global economy is projected to grow by 4.9% in 2022. The process of economic growth in developed and developing countries is expected to take place at different rates, depending on the scope of vaccination, the duration of the restrictions and the sustainability of stimulus measures.

Economic growth is projected at 4.5% in developed countries and 5.1% in developing countries. Inflationary pressures are expected to continue if the rapid realization of the deferred demand does not coincide with the increase in supply. Through various stimulus programs, fiscal support and monetary policy are expected to change depending on economic growth, employment and inflation.

"The growth in world commodity prices is expected to slow relatively as global supply expands. It is not ruled out that the growing problems of global warming will continue to affect world food prices next year.

The global oil prices will be formed next year under the influence of global economic activity, geopolitical factors and decisions made within OPEC+. The consensus price for 2022 by major think tanks (IMF, World Bank, US Energy Agency, Standard Chartered, Fitch, Barclays, etc.) is estimated at $70.9 per barrel, including $64.5 by the IMF. As a whole, global demand for oil is projected to continue to grow in 2022.

“The dynamics of global commodity prices will remain one of the factors influencing inflation in the world. Inflation will probably be high in 2022 in a number of developed and developing countries. This is mainly due to pressures from world food prices and rising energy prices for importers.

Despite short-term disruptions in the global logistics chain, global trade is projected to grow by 6.7% in 2022. Service trade is expected to recover at a slower pace than trade in goods," the statement concludes.