GDP grew by 2.5% in Azerbaijan in seven months of the year


September 13, Fineko/abc.az. In January - July 2019, the gross domestic product in Azerbaijan in real terms increased by 2.5%.

Abc.az reports, citing the data from the Central Bank, that the growth in the non-oil sector was 3% and mainly came from the trade sector.

The business confidence index, calculated on the basis of monitoring the real sector, has grown in the non-oil industry over the past month, declined in trade, and remained unchanged in the services and construction sectors.

With the expansion of consumption and non-oil investments, most leading cyclical indicators tend to grow.

Given the current level of oil prices ($65 - in the same period last year), the foreign trade balance was in surplus. According to preliminary data, exports for 8 months increased by 5.1%, including non-oil - by 15.4%, the growth rate of non-oil imports excluding monetary gold amounted to 11.7%. In the context of the balance of payments with surplus, supply in the foreign exchange market continues to exceed demand.

The country's strategic currency reserves have grown by 10.5% or $4.7 billion since the beginning of the year and amounted to $49.4 billion. World food prices since the beginning of this year have grown by 5.1%, including for meat products - by 10.7%, dairy products - by 14.4% (source: UN Food and Agriculture Organization).

In general, the prospects for weakening global economic activity, a slowdown in economic growth in partner countries and a fall in export prices can create potential threats to economic growth in Azerbaijan, affecting external demand factors.