Fitch: Azerbaijan’s economic growth gradually restoring

Baku. 22 November. REPORT.AZ/ Azerbaijan’s economy grew by 0.8% in the nine months of 2018 after 0.1%-growth in 2017, Fitch Ratings reported.

In the reporting period, non-oil sector expanded by 1%.

The agency says that as at the end of 2017, the 12.9%-inflation dropped to 2.4% as at end of October.

"The Central Bank of Azerbaijan (CBA) reduced the interest rate to 9.75% last month. This index was generally reduced by 5.25% throughout a year. As at the end of September, SOFAZ’s assets increased from $36 billion to $39 billion. These indicators show that Azerbaijan’s economic growth is gradually restoring," the agency said.

According to Fitch Ratings, these factors allowed an increase of investments in non-oil sector and softening in monetary and credit policy: "We believe that in spite of decline in dollarization in the banking sector, this index still remains high and it limits effectivity of the monetary and credit policy. As for the shift to inflation targeting mode, this is a mid-term goal’.

The experts of the agency say that new budget rules envisage new financial policy by determining maximum limit of the expenditures.