Sberbank Investment Research: Azerbaijan’s GDP to grow by 3.2% in 2019

Baku. 25 February. REPORT.AZ/ Azerbaijan’s economy will be able to stand against external factors and Gross Domestic Product (GDP) will grow by 3.2% in 2019, analysts of Sberbank Investment Research said in the CIS Market Daily, Report informs citing Interfax.

‘We are upbeat about the short-term economic perspectives in Azerbaijan and Kazakhstan after we visited these countries and met with representatives of companies and government officials. Rise in oil price, along with the increase of oil and gas production, support economies of these countries, improves their foreign position. If the oil price makes up $70 a barrel in 2019, these processes will be observed," the analysts said.

According to them, oil and gas sector will provide acceleration of economic growth of Azerbaijan. Rise in oil price and improvement in oil and gas production in 2019 supported Azerbaijan’s economy and stimulated GDP growth: "We expected the GDP to grow from 1.4% to 3.2% on the background of restoration of investment activity."

"Azerbaijan’s budget was executed with surplus in 2018. SOFAZ’s assets increased and we expect this to happen in 2019 again. Probably, external debt will drop because government and the state companies try to replace external debt with internal debt."

Situation in the monetary policy and regulation of banking sector is good: "Monetary policy has become more transparent. However, banking sector still remain weak. Great open currency position remains in this sector of Azerbaijan," Sberbank Investment Research said.

Azerbaijani government forecasts 3.6%-growth in GDP in 2019.