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Azerbaijan's GDP to exceed $48 billion in 2020

24 September 2019 [14:27] - TODAY.AZ

By Azernews


By Leman Mammadova

Azerbaijan's GDP for 2020 is projected at 82.7 billion manats ($48.66 billion), according to the draft state budget for 2020 approved by the Cabinet of Ministers, Prime Minister Novruz Mammadov has said.

In his words, real GDP growth is projected at 2.4 percent, including a 3.3 percent increase in the non-oil sector.

Mammadov stressed that macroeconomic forecasts for next year and the draft budget 2020 will ensure the efficiency and stability of Azerbaijan's economy.

In addition, next year, the country's authorities will continue to carry out reforms aimed at strengthening the defense capability and security of Azerbaijan, the development of communal and other infrastructure.

The state budget revenues will amount to 29.1 percent of GDP in 2020, expenditures - 30.9 percent, deficit - 1.4 percent, according to the forecasts.

Mammadov also noted that the revenues of the consolidated state budget for the 2020 are projected at 27.6 billion manats ($16.24 billion), expenses - 28.2 billion manats ($16.59 billion).

The state budget revenues for the next year are projected at 24.484 billion manats ($14.406 billion), up 5.7 percent or 1.316 billion manats from the current year. State budget expenditures in 2020 are projected at 25.617 billion manats ($15.073 billion), which is 427.7 million manats more than in 2019.

The revenues for the next year are calculated based on oil price of $55 per barrel (for 2019 - $60 per barrel). In the revenue structure, 57 percent or 13.9 billion manats ($8.18 billion) is planned to be provided from revenues from the oil sector, 43 percent or 10.5 billion manats ($6.18 billion) from the non-oil sector. An increase in budget revenues from the non-oil sector is planned by 11.3 percent in comparison with 2019.

The nominal GDP reached 50.9 billion manats ($29.85 billion) over the period January-August 2019. This is 2.5 percent more than in the same period last year. GDP per capita in this year amounted to 5,145.1 manats ($3,017.6) that recorded an increase of 1.5 percent.

The results of eight months of 2019, GDP growth in the non-oil sector accounted for 3 percent while its share was 59.7 percent. In the oil and gas sector, GDP growth amounted to 1.6 percent in the reporting period. However, despite an increase within all the spheres, the construction sector declined by 8.8 percent. Overall, 43.6 percent of GDP was produced in the industry sector over 8 months.

Azerbaijan has a well-developed industrial sector. Industrial output accounts for almost 60 percent of the country’s GDP. Increasing capacity of the economy, rising competitiveness and technological innovations enabled to diminish the country’s dependence on oil and gas exports.

GDP growth is expected at 3.6 percent in 2019, 3.8 percent in 2020, and 3.6 percent in 2021. Last year, GDP growth in Azerbaijan was 1.4 percent, and average annual inflation was 2.3 percent. The country's GDP reached 79.8 billion manats ($46.95 billion) last year, which is almost 15 percent higher than the forecasts. The main share of GDP accounted for the non-oil sector, 46.89 billion manats ($27.59 billion). The share of the oil sector, exceeding the forecast figures by 51.2 percent, amounted to 32.9 billion manats ($19.36 billion).

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