S&P expects steady growth of Azerbaijani economy

By Azernews

By Amina Nazarli

International rating agency Standard & Poor's (S&P) forecasts real growth of Azerbaijan's economy in 2018 by two percent.

In 2017, S&P expects the country's economy to fall by one percent, while in 2019 and 2020 the country will see a real growth of 3.5 percent.

The main factor in the growth of the Azerbaijani economy will be gas supplies within the second phase of development of the Shah Deniz field, according to the agency's report.

"We also expect increased investment efficiency in the non-oil sector amid a decline in inflation," the report said.

Azerbaijan's nominal GDP will continue to grow and by 2020 and will increase from 60 billion manat ($38 billion) to 89 billion manat ($48 billion).

This year, GDP per capita in Azerbaijan will be $4,000, in 2018 - $4,400, in 2019 - $4,700, and in 2020 - $4,800, S&P experts say.

The contract for the development of the Shah Deniz offshore field was concluded on June 4, 1996. The estimated reserves of the field is equal to 1.2 trillion cubic meters of gas.

The gas produced at the second stage of Azerbaijan's Shah Deniz field development will be the main source of the Southern Gas Corridor, which envisages the transportation of the Caspian gas to the European markets.

In 2013, a BP-led consortium has signed gas sales deals with European buyers for annual exports of 10 billion cubic metres from phase two of the Shah Deniz field project off Azerbaijan.

The nine buyers of gas from the BP-operated project include European energy groups Shell, E.ON and Enel.