Economic growth forecasts have been revised downwards.
Modern.az reports that this was stated by Vugar Ahmadov, Director General of the Central Bank, at a press conference dedicated to the announcement of the decision on the parameters of the interest rate corridor.
He noted that the Central Bank has updated its economic growth forecasts, and one of the main reasons for this was the change in expectations for non-oil gross domestic product.
“In the forecasts announced in February, non-oil GDP was expected to increase by 4 percent by the end of the year. However, according to May forecasts, this indicator is estimated at 3.2 percent.”
He also emphasized that the changes in the forecasts also took into account the situation in the non-oil and chemical sector and the assessments related to the assets of that sector:
“Overall, one of the main reasons for the downward revision in non-oil GDP is related to the base effect. The weakening observed in the last two months is expected to reverse in the rest of the year,” the bank official added.
