Vusal Gasimli, “The Economic Growth Rate Reached 4.8 Percent”

Vusal Gasimli, “The Economic Growth Rate Reached 4.8 Percent”

“Azerbaijan's economic growth rate is accelerating every month”, told the Executive Director of the Center for Analysis of Economic Reforms and Communication Vusal Gasimli. According to him, driven by the non-oil sector, which grew by 6.2 percent, in the first 9 months of 2021, the growth rate of GDP in Azerbaijan was 4.8 percent. “As of the IMF forecasts, Azerbaijan's economy will grow by 3 percent this year, which is higher than previous forecasts and shows an increase in confidence in the national economy. However, the growth rate of the national economy significantly exceeds the forecasts of both the IMF and the World Bank. Economic growth in Azerbaijan already exceeds the 4.1% level forecast for the Middle East and Central Asia in World Economic Review”, told V.Gasimli.

Vusal Gasimli considers that the main reason for this lies in the high rate of industrialization. As he noted, “Industry accounts for 40.1 percent of GDP in Azerbaijan, which is significantly higher than the world average of 24.8 percent. For comparison, the share of industry in GDP is 27.2 percent in Central Europe and the Baltic countries, 21.5 percent in the Eurozone, and 21.1 percent in the OECD countries. The share of the non-oil and gas sector in the structure of the industry in Azerbaijan is growing faster. Azerbaijan is developing following the requirements of the fourth industrial revolution”.

V.Gasimli noted that macroeconomic fundamentals stimulated economic growth in the context of post-conflict construction, as well as a surplus of the balance of payments and consolidated budget balance. “According to IMF forecasts, the ratio of Azerbaijan's current account to GDP in 2021 will be 7.8 percent which is significantly higher of the similar indicator - 1.7 percent, in the Middle East and Central Asia. According to forecasts, in 2021, Asia in terms of the current account-to-GDP ratio, Azerbaijan will be in the top three in the Middle East and Central Asia”, mentioned V. Gasimli.

Although Azerbaijan is preparing for the post-oil era, the country is confidently maintaining its status as an oil and gas exporter against the background of current problems in energy markets and strengthening its role in Europe's energy security that is facing serious threats. “Amid problems in the world's supply chains, the realization of a new artery on the East-West corridor by Azerbaijan - the "Zangazur Corridor" can contribute to the economic growth potential not only of our country but also the region”, concluded V.Gasimli.

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