ADB forecast on Azerbaijan: Economic growth to observe downturn in 2020


April 3, Fineko/abc.az. Azerbaijan observed the grown pace of economic growth last year due to tax incentives and increased gas production amid the growth of inflation and rising food prices, ADB report on Azerbaijan says.

According to the ADB report, the fall in oil prices led to a decrease in the current account surplus.

The ADB says that despite the increase in budget expenditures, a further decrease in the surplus against the background of the new COVID-19 coronavirus pandemic will lead to a slowdown in economic growth in Azerbaijan in 2020.

However, economic growth is expected to recover in 2021. The ADB forecasts that inflation will initially weaken amid the strengthening economic growth rates, but will accelerate in 2021. Against the background of lower oil prices, the current account surplus will be reduced in 2020, and expanded in 2021, amid a projected rebirth in oil prices. The ADB considers that the Azerbaijani government should increase the efficiency of budget allocations.