An International Monetary Fund (IMF) team, which visited Baku from May 19 to June 1 to hold discussions in the context of the 2016 Article IV Consultation, made the statement on Azerbaijan's economic growth.
According to report, the consumer price index in Azerbaijan will be 12.8% in 2016 and 9.5% in 2017.
The experts also believe that the amount of foreign direct investment to Azerbaijan will remain low: 1.9% in 2016 and 2% in 2027.
“Azerbaijan’s economy has been hit by a series of negative shocks, in particular the decline in oil prices, and slowdown and currency depreciations in trading partners’ economies. As a result, economic growth fell to 1.1% in 2015 and is projected to turn negative (-2.4%) in 2016 before it starts picking up in 2017. Growth is expected to rise to about 2.5 to 2.75% over the medium-term as gas production and exports rise and reforms start to take effect. Full implementation of a strong structural reform agenda could increase the economy’s growth potential to around 4 to 5%," the reports says.
