By Azernews

By Ayya Lmahamad

The inflation in Azerbaijan is forecasted at 11.5 percent in 2022, Azernews reports per the Asian Development Bank's (ADB) September outlook.

In the meantime, the bank forecasts inflation at 7 percent for Azerbaijan in 2023.

The inflation during the first six months of 2022 accelerated to 12.9 percent year on year from 4.3 percent as against the corresponding period of 2021, the statement reads.

"Prices rose by 18.4 percent for food, 6.7 percent for other goods, and 10.3 percent for services. High global food price inflation triggered the spike in food prices, while increased tariffs for fuel and other utilities in 2021 boosted inflation in services," the statement reads.

ADB's outlook noted that a stable exchange rate kept inflation from rising even faster.

According to the forecast, GDP growth in Azerbaijan in 2022 is expected to stand at 4.2 percent, while in 2023 at 2.8 percent. The statement noted that growth jumped to 6.2 percent during the first half of 2022 from 2.1 percent compared to the same period of 2021 as the economy aside from the large hydrocarbon industry expanded by 9.6 percent.

"Services grew by 9.6 percent, reflecting strong performance in transportation, a rebound in retail trade, and a doubling of value added in hospitality as pandemic travel bans were lifted. Manufacturing grew by 4.5 percent with strong gains in construction materials and metals, food processing, and textiles. Mining picked up by 2.5 percent, with expansion in both oil and gas production, while construction grew by 7.7 percent. Agriculture stalled during the period, with higher livestock production offsetting a 2.7 percent decline in crop output," the statement adds.

Azerbaijan has been a member of the Asian Development Bank since 1999. Since then, the bank has committed $4.4 billion in loans, and $32.28 million in technical assistance projects, including ADB-administered co-financing for Azerbaijan.