Consolidated budget deficit planned at 2.0% of GDP in 2017
Ministry of Finance of Azerbaijan Republic has published a draft budget for 2017. According to the document, consolidated budget revenues will be AZN 19.7bn (32.1% of GDP), while expenditures are set at AZN 21.0bn (34.1% of GDP), resulting in a consolidated budget deficit of 2.0% of GDP. The document is based on US$ 40.0/bbl oil price, compared to US$ 25.0/bbl set for the 2016 budget, and 1.0% real GDP growth rate.
GDP to expand an average of 1.9% annually from 2017 to 2020
The government expects GDP growth to be in the range of 1.0%-2.8% from 2017 to 2020, driven by the non-oil sectors. Non-oil GDP is forecast to increase 2.5% y/y in 2017 and 2.6% y/y in 2018. Nominal GDP is forecast to be AZN 61.4bn in 2017, 13.0% higher than the actual level in 2015. In US$ terms, however, at AZN/US$ at 1.6 in 2017, nominal GDP would amount to US$ 38.4bn, 27.5% lower than the actual level in 2015.
Azerbaijan’s competitiveness ranking improved
Azerbaijan has improved its ranking in the World Economic Forum’s Global Competitiveness report from 40th to 37th position and remains the regional leader.
