BAKU, Azerbaijan, November 27. The European Bank for Reconstruction and Development (EBRD) has projected that Azerbaijan's real GDP will grow by 3.8 percent in 2024, with a slowdown to 2.7 percent in 2025, Trend reports via the bank’s latest data.
The EBRD points out that the country’s economic growth picked up steam in 2024.
"The real GDP increased by 4.3 percent year-on-year in the first half of 2024, driven by steady growth in real incomes and significant investments in public infrastructure. The non-oil sector’s real GDP returned to a solid growth rate of 6.8 percent year-on-year, following a slowdown in 2023, while the oil and gas sector saw positive growth of 0.6 percent for the first time in two years, due to ongoing increases in gas production," the EBRD underlined.
The bank pointed out that energy exports and government investments will keep the wheels turning for short-term growth.
"Demand for Azerbaijan's energy products is expected to support export revenues, although volatility in oil and gas prices poses a risk. The country’s high foreign exchange reserves and significant sovereign funds provide a liquidity buffer against this risk. Therefore, the government is likely to maintain current levels of public investment and expenditure. We forecast real GDP growth of 3.8 percent in 2024, which will slow down to 2.7 percent in 2025. The outlook heavily depends on fluctuations in oil and gas prices and geopolitical instability in the region," the report said.
To note, while the Asian Development Bank (ADB) projects Azerbaijan's GDP growth to be 2.7 percent in 2024, with a slight decrease to 2.6 percent in 2025, the World Bank forecasts a 3.2 percent growth rate in 2024.