The Asian Development Bank (ADB) has published revised GDP forecasts for Azerbaijan. Specifically, the ADB forecasts 3% GDP growth for this year against the previous 8%, and 4.5% against the previous 6.7% for next year.

The global economic crisis affected Azerbaijan through a fall in the world oil prices and smaller foreign and inward private investments. A 1% decrease in industrial output, as well as and a 7.1% decrease in fixed capital, was registered in the first half of this year.

The Government investment program and social expenditures remain key factors of economic growth, and the low world oil prices pressure the budget.

The ADB forecasts an inflation rate of 4% in Azerbaijan for this year against the previous 12%, and 7% for next year (the Government-forecast inflation is 1%). The ADB also forecasts a favorable balance of payments of 15% of GDP for Azerbaijan for this year against the previous 25.5%, and 17.7% for next year.