BAKU, Azerbaijan, April 28
By Jeila Aliyeva - Trend:
Higher demand for oil and gas and improved global prices should boost hydrocarbon output and exports, restoring GDP growth to 4.8 percent in 2021 and 4.9 percent in 2022, Trend reports with reference to Asian Development Bank (ADB) outlook.
“Higher global prices for oil and gas and a gradual resumption of gas shipments under contracts with the People’s Republic of China could lift export revenue by 5 percent–7 percent in both 2021 and 2022,” says the report.
Also, ADB projects industry to grow by 4 percent–5 percent reflecting gains in hydrocarbon processing, electricity, chemicals, food and agricultural products, light manufacturing, textiles, and construction materials, all of which have import substitution targets.
Agriculture is forecast to expand by 4 percent in both years.
“The government is expected to continue efforts to limit inflation by maintaining a fixed exchange rate and administrative price controls while promoting import substitution. Banks will maintain direct lending to state-owned enterprises and support private firms in priority sectors,” noted the report.
As earlier ADB told Trend, the bank is discussing with Turkmenistan to expand its sector coverage to include small and medium enterprise (SME) financing through local banks, training of nurses and paramedical workers, and railway development.
ADB’s plans to expand the mentioned sector are aside from implementing the ongoing power grid strengthening project and preparing the TAPI Gas Pipeline Project.
Speaking about the Tajikistan-Afghanistan-Turkmenistan railway (TAT) project ADB noted that the bank has yet to extend any investments specifically for the TAT.
"ADB continues to be actively engaged in discussions with all of its developing member countries on their priority projects including for railways, and remains open to providing support for those projects which are economically viable and financially sustainable," said ADB.
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