(MENAFN- AzerNews)
Ulviyya Shahin Read more
The Asian Development Bank (ADB) predicts that the GDP growthrates in Azerbaijan will be 1.2% in 2024 and 1.6% in 2025 due tothe increase in public spending and the service sector, Azernews reports.
This is stated in the bank's April report of "DevelopmentProspects of Asia" (ADO) published today.
It should be recalled that according to the previous (September2023) ADB assessment, Azerbaijan's GDP growth for 2024 waspredicted at the level of 2.6%.
"Growth in the service sector is projected to increase to 2.3%in 2024 and 3% in 2025, due to the expected growth in the retailtrade and transport sector. Profits in the transport sector will beprovided on the basis of the agreement between the State OilCompany of Azerbaijan (SOCAR) and Kazakhstan's national company"KazMunayGaz" on increasing the transit of Kazakh oil through theterritory of Azerbaijan," ADB noted.
According to the bank's analysts, the decline in the industrialsector will decrease to 1.6% in 2024 due to the weakening of oilplatform productivity, and to 1% in 2025 due to the more importantgas production.
"The production of food, building materials and petrochemicalswill limit the downturn in the broader industrial sector. The nextround of agricultural support programs will help support growth incrop and livestock production," the report said.
ADB believes that private consumption and net exports willstimulate demand growth. Private consumption growth is projected toaccelerate as economic growth and a further slowdown in inflationwill increase real household incomes. High salaries of civilservants will stimulate public consumption.
According to bank analysts, public investment will remain themain driver of total investment over the forecast period, whilelower oil production and weaker oil prices pose risks to plannedspending. Net exports will also increase as export earnings outpaceslowly rising imports.
It should be noted that the government of Azerbaijan predictsGDP growth for 2024 at the level of 2.4%.
In 2023, the economy of Azerbaijan grew by 1.1%.
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