CBA talks optimistically on economic activity in Azerbaijan

According to the forecasts of the Azerbaijani government, the Central Bank, as well as various international institutions, continued economic growth is expected in the country in the near-term, according to a report of the Central Bank of Azerbaijan (CBA) on monetary policy in the last year, released on Friday.

According to the latest economic survey of the World Bank, economic growth, which is projected at 4.2 percent, will continue in Azerbaijan in 2013. Forecasts of the WB, the IMF, the EBRD and the UN show that economic growth in the country this year will be at nearly 3.5 percent.

The monitoring results of the real sector conducted by the Central Bank of Azerbaijan show that expectations for economic activity are optimistic. Thus, according to monitoring results, the indices of demand for and expectations for sales in trade tend to increase. Positive expectations are observed in the food industry, production of construction materials and weaving, in the sale of furniture and household electrical equipment.

According to the latest report of the International Monetary Fund, in 2013, the average annual inflation in the country is expected to be at six percent, or 1.7 percent lower than the CIS average. The Asian Development Bank also expects inflation to be at six percent in 2013.

"According to the results of monitoring the real sector, there is no significant growth in the expectations for prices in the economy. Whereas in the first half of 2012, positive expectations were observed in the industrial and construction sectors, in the last three months of last year a downward trend was recorded in expectations for prices due to the seasonality. During the year, the index of expectations for prices in the service sector and the trade was in the negative zone," the report said.


/Trend/