BAKU, Azerbaijan, July 25. Azerbaijan’s non-oil sector is not expected to grow significantly in upcoming years, Trend reports, citing S&P Global Ratings agency.
Although, as the agency noted, the sector has experienced a strong growth up to 9.6 percent year-on-year in June 2022. In terms of sub-sectors, the highest increase was recorded in transportation (34 percent), and industrial production (11.5 percent).
“That said, we expect momentum to slow through the rest of this year, partly due to base effects but also as elevated inflation is likely to drag on consumption growth momentum. Beyond 2022, we also do not expect high growth rates in the non-oil sector to be sustained, given only limited progress in economic diversification and structural reforms in recent years,” the agency said.
Also, according to the agency, Azerbaijan's GDP growth in 2022 is projected at 3.5 percent, after a strong rebound of 5.6 percent in 2021.
Meanwhile, S&P Global has affirmed its 'BB+/B' long- and short-term foreign and local currency sovereign credit ratings on Azerbaijan with a stable outlook.
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