National economy to grow by 3.5pct in 2019

By Azernews

By Sara Israfilbayova

The European Bank for Reconstruction and Development (EBRD) forecasts economic growth in Azerbaijan by 1.5 percent in 2018 and 3.5 percent in 2019.

The updated report of the bank entitled “Regional economic prospects: in the shadow of trade conflicts” says that the economic recovery in Azerbaijan is supported by macroeconomic stability and high oil prices.

The report reads that the total assets of the State Oil Fund (SOFAZ) and the Central Bank’s international reserves amounted to $44.5 billion, which is 8.2 percent more than at the end of last year.

“The exchange rate of manat against the dollar has been at a stable level since April 2017. The inflation rate decreased from 12.9 to 2.6 percent,” according to the report.

The EBRD is an international financial institution founded in 1991. As a multilateral developmental investment bank, the EBRD uses investment as a tool to build market economies.

The Bank was established to support countries of the former Eastern Bloc in the process of establishing their private sectors. To that end, it offers “project financing” for banks, industries and businesses, for new ventures or existing companies.

The EBRD has allocated more than €3.18 billion to Azerbaijan for implementation of 167 projects since 1992.

One of the main priorities of the EBRD in Azerbaijan is to support the local corporate with direct financing. The EBRD continues to pursue investments in energy projects, especially where there is a gap to improve efficiency and energy security.