Azerbaijan's economic development in H2 promises better progress

By AzerNews

The forecasts for Azerbaijan's economic development in the second half of 2014 are positive. Being the fastest growing economy in the world during the last ten years, Azerbaijan predicts that its non-oil sector as well as GDP will continue to grow in the mentioned period.

Azerbaijan's economy has grown more than three times during the last ten years. This is the fastest economic growth rate in the world. The real GDP growth in Azerbaijan amounted to 5.8 percent in 2013. The country's GDP in 2013 increased up to 57 billion manats.

"The macroeconomic indicators are positive, and the trend will continue throughout the second half of this year," Chairman of the Center for Economic and Social Development Vugar Bayramov told local press.

"A look at specific sectors of the economy shows that there would be a price hike in the consumer market," the experts said.

It is expected that in August and September the prices in the real estate market will remain stable. Starting from October, the prices will rise in Baku's districts located close to the city, including in Khirdalan city. A slight price increase is expected in Baku as well.

"Overall, in 2014 an increase in prices by 9 percent is expected in the suburbs, and about 4 percent in the center," Bayramov noted.

Also, it is expected that food prices would increase in the second half of 2014.

"In particular, the prices of agricultural products will increase through the season," the expert added.

Touching on the inflation rate of the country in the reported period, Bayramov said it is expected to reach 4.5 percent, while this figure was predicted at 2.5 percent by the country's State Statistics Committee.

The European Bank for Reconstruction and Development (EBRD) predicts that the economic growth of Azerbaijan will stand at 3.5 and 3 percent respectively in 2014 and 2015.

The International Monetary Fund (IMF) predicted that Azerbaijan's inflation would be 3.5 percent in 2014 and 4 percent in 2015.

In 2013, the inflation rate in Azerbaijan stood at 2.4 percent.

Bayramov went on to add that the exchange rate of manat [Azerbaijan's national currency] against the U.S. dollar in the second half of the year will remain unchanged.

"The exchange rate of manat against euro depends on the exchange rate of euro against dollar," he added.

Azerbaijan has also resolved the issue of unemployment. The jobless rate is standing at around 5 percent.

Bayramov believes the macroeconomic indicators of employment will be positive as well.

"Positive changes are predicted in the employment market. They are expected to open new working places. In this regard, the policy of ensuring the employment will be pursued in a positive way," he concluded.