Azerbaijan’s economic recovery is expected to be gradual, with output returning to pre-COVID-19 levels only by end 2022, ONA reports citing World Bank's newly-published report on the region.
"The early launch of Azerbaijan’s vaccination initiative and significantly higher public post-conflict reconstruction spending suggest that the recovery may materialize faster than previously anticipated. In 2021, an acceleration of domestic demand will support economic growth, but this will be conditional on an improved health situation and increased public spending. Higher oil prices are forecast to narrow fiscal deficit and help current account return to surplus. Beyond 2021, without major structural reforms, the pace of the economic revival is likely to be moderate owing to a protracted recovery in oil output and anticipated fiscal tightening (amid rising fiscal pressures)," noted in the report.