Government of Azerbaijan adjusted GDP Growth Rate to 2,5 % for 2012

Government of Azerbaijan adjusted GDP Growth Rate to 2,5 % for 2012

Government of Azerbaijan (GoA) has adjusted its previous official forecast of 5.7 % GDP growth in 2012 to 2.5 % right away after CESD announced its survey results on Monday this week. The report came from Cabinet Ministers of Azerbaijan Republic on September, 26, 2012. In fact, GoA adjustment was based on CESD survey findings announced couple days ago. Hence, GoA failed to achieve economic growth forecast for 2012. Meanwhile, the State Statistical Committee reports that production in non-oil sector grew by 7.9%, while production in oil sector dropped 5.4%. GDP increased only 1,3 % in this period. The CESD survey results show that GDP increased 0,7 % in the first eight month of 2012 since growth in non-oil sector was 6,1 %.

The CESD also forecasts 5.2 % growth in the non-oil sector while the Azerbaijan government still targets 9.0 % growth in 2011. CESD reports that the inflation rate in Azerbaijan is expected to be 9.5 %, which scheduled only 6.0 % by the Government of Azerbaijan earlier in the year.

It is reminded here, that Azerbaijani Cabinet Ministers submitted the Draft Law on the State Budget and the Consolidated Budget for 2013 and next 3 years, the Socio-Economic Development Concept 2013 and next 3 years and forecast figures to the President. The Cabinet informs that the budget package was presented to the heads of the state with economic growth forecast for 2013 at the level of 8.5%.

“The non-oil sector, where GDP can grow in the range of 15-20% will ensure the basis of economic growth. At the same time, the oil sector which was at the peak of the recession for a couple of years will return to economic growth,” the Cabinet said.. “The forecast says that foreign investment will remain at the level of the current year, and the total investment will increase due to an increase in domestic investment. Increase in state investment is going to continue,” the source added.

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